My Take on BTCL listing The intended listing of BTCL is a great milestone in effort of privatization in Botswana. I am yet to see the prospectus of the IPO and will only make my analysis then, for now I will share basics of stock buying in Botswana. To make this info useful I will avoid being technical. You cannot buy shares directly from a listed company or BSE. Shares are bought through a licensed stockbroker. There are four brokers licensed by BSE. Below paragraph details the way to deal with securities in Botswana. CSD stands for the Central Securities Depository, which is a computer system that facilitates holding of securities in electronic accounts in contrast to paper certificates. The CSD is very similar to a bank and an account in the CSD operates in a similar manner to a bank account. You need to open a CSD account for the following reasons: (1) Purchasing securities Your CSD account will be credited when you purchase securities. If you do not have a CSD account you will not be able to purchase securities on the BSE. (2) Selling securities Your CSD account will require to be debited when you sell securities. You should contact your stockbroker, custodian bank or any other participant authorized by the BSE to open CSD accounts on behalf of investors. The three custodian banks are Barclays, Stanbic and FNB (Source: BSE) BSE has one of the best returns in Africa. Botswana stock market spends most of the year dull due to its inherent small size. Most pundits have accredited this dullness to the fact that majority of floating stocks are held by institutional investors. Botswana encourages a 60-40 percent (domestic/foreign ratio) investment by local fund managers. This noble policy has culminated in excess cash available for investing due to the size of the local market. The introduction of BTCL to the bourse which I hope, cross fingers the levy is not increased, will not meet Sechaba on its way out will be a great chance for every Motswana to lay a finger on the shares. I hope the executors of this noble idea give only individuals not institutional investors the 49%.
Posted on: Wed, 15 Oct 2014 07:23:27 +0000
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