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BancABC aims to list by December
Posted on Wednesday, 07 November 2018 14:39
Atlas Mara has launched an initial public offering (IPO) worth BWP 361.05 million (USD 33.15 million) for African Banking Corporation of Botswana (BancABC Botswana) on the Botswana Stock Exchange.
The sub-Sahara African financial services’ listing, which is slated for 10th December, will be the country’s third-largest on record, according to Zephyr, the M&A database published by Bureau van Dijk.
It comprises a sale of up to 24.9 per cent of the lender by Atlas Mara’s wholly-owned subsidiary ABC Holdings (ABCH) and represents a valuation multiple of 1.5 times book value, as at 30th June 2018.
Several local institutional investors have already submitted irrevocable subscriptions to acquire a substantial portion of the tendered 180.53 million shares priced at BWP 2.00 apiece.
Atlas Mara took on BancABC through the public takeover of ABCH in 2014 and intends to remain a significant majority shareholder to help drive the execution of the lender’s long-term strategy.
The listing is expected to further promote the bank’s expanding corporate stature in the local market “as it seeks to diversify client offerings and grow market share, while benefiting from the support of local institutional relationships”.
BancABC is the country’s fourth-most profitable bank, based on the latest available financial statements of the other commercial lenders in the industry and Bank of Botswana statistics, as at 30th June 2018.
The company has three distinct business segments, with retail activities constituting the largest proportion of the current business, but with ongoing efforts to diversify client offerings and maximise value for shareholders.
Currently, these operations across savings, payroll accounts, and insurance, via bancassurance, contribute 75.0 per cent to revenue, 85.0 per cent to the loan book and 15.0 per cent to deposits.
BancABC’s commercial division accounts for 13.0 per cent of revenue, 15.0 per cent of the loan book and 66.0 per cent of deposits.
© Zephus Ltd