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Why to List on BSE

There are significant advantages to listing on the BSE. These include:

Access to investment community

Listing provides greater access to the much needed initial and growth capital.

Listing provides access to a large equity capital market that would otherwise not be available to an unlisted entity. Access to this market enables a listed entity to extend its funding base upon which it can expand and grow the business into the future.

It can provide a means of increasing the number and diversity of security holders, from large institutional investors to private investors. Listing is a means by which a company can issue additional securities to raise equity or debt finance.

Generally speaking, equity or debt financing is far more efficient and cost-effective than going to a bank for a line of credit or loan application. Alternatively, existing security holders may want to realize part of their investment by selling a portion of their existing securities in a float.

Companies that are already listed with the BSE and have a track record of sound management, good profitability and share performance, have a range of equity funding options available to them. Additional ordinary shares may be issued on a pro-rata rights basis to existing shareholders and issue of preference shares.

Raised Profile

It enhances your profile in the eyes of the investment community and generates awareness of your products and services.

Listing of a company raises its public profile and in the markets for its products and services. The publicity received may benefit a business and the raised profile may increase the standing and reputation of the business within its particular industry.

It may also help you to negotiate favourable terms with suppliers, customers and financiers.

Benefits to employees

Listing is an aid into motivating your staff through the introduction of employee incentive scheme.

A public share listing can provide a corporation with an opportunity to be sensitive to the welfare of employees by sharing in growth, and providing an incentive and reward for their performance. Such schemes are provided through issue of shares or options to employees at a discount.

Immediate Community Social responsibility

Listing provides an opportunity to empower citizens.

Being a publicly listed entity allows Botswana Citizens to participate in the overall growth and development of their country. Through share ownership, everyone benefits by becoming a key stakeholder in Botswana’s future.

Other Reasons

  • Be associated with the most pre-eminent companies doing business in Botswana. All major banks in Botswana are listed together with robust companies from retail and warehousing, tourism, property, energy and oil and foreign multinational companies.
  • The BSE returns have averaged 24% in the last decade the return for 2006 were impressive at 74%.
  • The BSE has a strong regulatory framework that ensures markets run efficiently
  • The BSE has dedicated staff and committees that ensure strict monitoring and surveillance of operations
  • Botswana capital markets continuously perform well due to strong and consistent political governance, sound national economic management, and social stability.
  • Botswana Pula is more stable currency to the US$ than any other country in the region.
  • Botswana has been assigned “A” credit rating by rating agencies of Standard and Poor’s and Moody’s. This makes Botswana Stock Exchange a cheaper avenue for raising development capital through equity and debt issues, than all other African countries and many middle –income countries stock exchanges.
  • There are no foreign exchange controls in Botswana and dividends/profits from investments are freely repartriable
  • No restrictions are imposed on foreign investor participation and holdings of BSE investments
  • No capital gain tax