NSX lists first capital pool company

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Staff Reporter

Windhoek-Nimbus Infrastructure Limited listed on the Namibia Stock Exchange on Friday as a private placement, becoming the first capital pool company to list on the Namibian bourse.

A capital pool company is a capital raising structure that is relatively commonly utilised in North America and more recently, South Africa, which allows for capital raising and co-investment by various institutional and individual investors in order to seek and develop potential investments.

The listing of Nimbus was a joint initiative between Cirrus Capital, Paratus Namibia and Cronje & Company.
The initial capital raising saw in excess of N$100 million raised from institutions and retail investors, for investment into information communication technology projects and institutions in sub-Saharan Africa.

Nimbus is currently looking at a number of potential transactions and as per the stock exchange rules, aims to take these transactions forward for shareholder approval before the end of the year.

The Nimbus listing boasts exciting opportunities for Namibia, as it not only focuses on the fast-growing information technology sector across the continent, but in so doing, offers a strong diversification opportunity for the funds of institutions and individuals alike, allowing diversified jurisdiction, currency and sector returns for investors.

“Nimbus allows opportunities to utilise Namibian discretionary and contractual savings to play a key role in the development of the Namibian economy for the benefit of the Namibian people. Saving and investing is critical for an economy as investment drives increases in productive capacity and long term growth, vital for wealth and job creation, and ultimately poverty reduction,” the company said in a statement.

Nimbus has signed a management agreement with Paratus Namibia, whereby the investments made by Nimbus will be managed by Paratus, a Namibian telecommunication company.

When it comes to ICT, Africa is lagging behind much of the rest of the world, with internet penetration rates, on average, around one-third of what one sees in the developed world.

In this regard, most African countries have internet penetration rates of under 30 percent, although Namibia is at approximately 31 percent, with countries such as the Democratic Republic of the Congo having an internet penetration rate of approximately 4 percent of the population.

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