KATLEGO RAKOLA
Botswana Stock Exchange (BSE) expects to make at least four listings before the end of this year, two of which are expected in a month. The bourse is steadily gaining momentum from the negative effects of the COVID-19 pandemic, which has seen very little activity being recorded since the beginning of the year.
BSE Chief Executive Officer, CEO Thapelo Tsheole said they are currently working on two listings, both of which are international companies. He believes this shows confidence in the local market, especially at a time when listings are quite difficult to attract because of COVID-19.
“One is a AAA rated institution that is actually listing a fund while the other is an exchange traded fund based on several income instruments. They are at very advanced stages, the first one will be coming up in the next few weeks while the other one is expected to list in a month,” said Tsheole.
Later on in the year, the CEO anticipates the BSE to bag two other listings, as well as two bonds.
Meanwhile Tsheole said despite activity on the exchange being very low, they have realized that it is slowly picking up. He observed for the past 3 months there have been positive returns, giving the exchange optimism that performance will eventually turn a tide.
“Also, if you look at the value and the number of shares traded in the last 3 months, it does show that it has significantly gone up,” said Tsheole.
The CEO said the bourse is currently engaging the market to find out the needs of companies, as an attempt to retain listings, following some de-listings recently on the exchange. Tsheole however said the de-listings had nothing to do with the bourse, but were strategic moves by the companies, some of which were merging while others had been significantly affected by the stock markets. He added that the bourse is however on an internalization drive, to attract more companies especially those that do business in Botswana, but are listed elsewhere, to consider the BSE.
“Majority of international companies doing business in the country were able to raise capital on the local bourse, and therefore we offer a great investment platform and we are open to companies coming to list in our market. The two listings we are working on, one is a multinational company and another a South African company, two clear examples of how our market offers opportunities for international companies,” said Tsheole.