In a development that will come as a body blow to the local stock market, Afinitas has notified its shareholders of its intention to exit the Botswana Stock Exchange (BSE).
Should shareholders approve the resolution at their General Meeting set for 5th March, the company will terminate the trading of its shares on the BSE from 21st April.
To proceed with the delisting process, Afinitas will need at least 75 percent of total voting rights exercised by shareholders.
The company was listed on the BSE’s Venture Capital Board in July 2015 through an initial public offer.
The objective was to, among others, raise capital from investors in a cost-effective manner and to take advantage of a new interest in Africa as an investment destination from large institutional investors.
While in the last five years the company has done its best to execute its strategy, diversifying the geography and sectors of Afinitas, a decline in global investor sentiment towards Africa as an investment destination combined with the Covid-19 pandemic have hit the company hard.
As a result, the enterprise remains a loss-making entity, and Afinitas says there is no certainty when this trend will reverse.
The company notes the outbreak of Covid-19 has had a devastating impact on its business and anticipates the impact will be felt throughout the course of 2021.
It is said the liquidity of Afinitas shares and their trading on the BSE has been minimal, with a total of only 50 days when trades took place for a total of 2, 123, 767 shares. Additionally, in the last two years only three days of trading were reported, in which time 11, 762 shares were traded.
Afinitas is a Pan African investment holding company based in Botswana with investments in Ethiopia.
Besides being listed on the BSE, it is also accredited to the Botswana International Financial Services Centre (IFSC).
The company is primarily focused on providing seed capital and developing new Africa-centered businesses.
While there has been no new listing in recent years, BSE suffered two delistings in 2019 when Furnmart and Wilderness Safaris exited within the space of five months.