Plans to list on Stock Exchange by end of June
The Director of Homec Investments, Percy Raditladi is confident his company will be listed on the Botswana Stock Exchange (BSE) by the end of June.
Raditladi made his bold assertion at a Homec (National lottery) press briefing held in Gaborone last Thursday.
He pointed out that Homec is a public company mandated to raise funds for Batswana through listing under BSE.
“We are on course to list under BSE as a Special Acquisition Company (SPAC) with the sole purpose of allowing Batswana to own shares in the historic lottery business. Money raised in this project will be injected into the venture and if capital ambitions are not met, investors are refunded their investments through regulatory instruments,” he stated.
Asked to break down exactly how a SPAC works, Raditladi explained, “SPAC is a company with no commercial operations that are formed strictly to raise capital through an Initial Public Offering (IPO) to acquire an existing company.
“Moreover, SPACs are generally formed by investors, or sponsors, with expertise in a particular industry or business sector with intentions of pursuing deals in that area.”
Raditladi further revealed money raised in an IPO is placed in an interest-bearing trust account.
“These funds cannot be disbursed except to complete an acquisition or to return the money to investors if the SPAC is liquidated,” he added.
The upbeat Homec Director noted the initiative marks a historic new chapter in Botswana.
“The beauty about this concept is that gone are the days where an excellent project could not be funded because of limitations. The fundraising model will empower every Motswana, as anyone can do it for any special projects of their choice.”
Raditladi also predicted the project would prove pivotal in revitalizing the lives of Batswana.
“I think the initiative is going to help Batswana immensely as it will open doors for Batswana to buy a stake and improve their lives,” he declared.