Windhoek-The intended listing by Letshego Holdings Namibia (LHN) towards the end of next month is expected to increase the overall market capitalisation of the Namibia Stock Exchange (NSX) by N$2.35 billion and the free float by N$470 million.
Letshego’s initial public offering (IPO) is expected to be 470 cents per share.
Free float is generally described as all shares held by investors, other than restricted shares held by company insiders and thus does not include restricted shares, which are owned by company management, officers and other various insiders because it is assumed that those shares are being held on a very long-term basis.
According to the NSX’s Information Officer, Johene Saal, the Letshego listing would go a long way in addressing the goals of the Financial Sector Strategy, which aims to deepen the country’s capital markets. “The NSX welcomes all new listings and believes it is crucial for companies to invite more shareholders into their businesses if they want to create and share wealth in the markets they do business in,” said Saal.
The planned LHN IPO will be a first of its kind on the NSX, as the public offer will prioritise educating members of the general public, giving preference to Namibian residents, with a primary focus on previously disadvantaged Namibians (PDNs).
LHN confirmed its intended IPOI last week, saying it would enable Namibians to be part of Letshego Namibia’s history of improving life. A statement from LHN noted that its purpose is to provide simple, appropriate and accessible solutions to the financially under-served and excluded in a sustainable manner, including, but not limited to, government employees. In line with this, the planned IPO will include people who are typically financially excluded, and are a key part of Letshego’s financial inclusion strategy.
“We believe that to be totally financially inclusive, we should offer Namibians the opportunity to be part of our growth. Through the planned IPO, partners, customers and wider stakeholders of Letshego have an opportunity to own shares in this business they have come to know so well. As we grow, so shall ordinary Namibians’ wealth. We believe this is what empowerment is all about, as Letshego is now becoming our Letshego,” said LNH CEO, Ester Kali.
“We will be calling our planned IPO ‘Ekwafo Letu’, which means ‘Our Support’. This is in recognition of what Letshego, at its core, stands for: to provide support. Support to those who are typically under-served by traditional financial institutions. Our Letshego story is about empowerment, via the solutions we provide, and now via Ekwafo Letu,” said Kali.