Local company CA Sales Botswana has announced November 9th, 2017 as the date for their listing on the Botswana Stock Exchange (BSE).
The company which trades in Fast Moving Consumer Goods (FMCG) will join other 18 domestic companies, seven foreign companies as well as an additional seven venture capital companies as the latest addition to the stock exchange.
BSE Head of Market Development, Thapelo Moribame said the CA Sales listing is a welcome development as the BSE encourages entities operating in the local economy to list, adding that the BSE is currently on a drive to engage companies that have the potential to list in the short to medium term.
She invited those eligible to get in touch with the BSE for a presentation of the listing value proposition and the process that is involved in a listing.
Moribame highlighted some of the benefits of listing in the BSE as including among others, owner equity release where company founders can disinvest or cash-in a portion of their shareholding in the business.
“Employee retention and attraction is also an opportunity for listed entities who have the added advantage of creating Employee Share Option Plans (ESOPs) that can help retain and attract high calibre employees, was also cited as one of the benefits of listing,” she continued.
Enhanced credibility was mentioned as yet another of the many advantages of getting listed on the BSE.
By virtue of being a listed company, a company’s stakeholders such as banks, suppliers and other entities become more amicable to doing business due to good governance practices.
The CA Sales Group, which boasts an annual turnover in excess of P1.5 billion has the advantage of engaging in enhanced corporate governance practices through the listing as listed companies have to adhere to listings requirements on a continuing basis.
These include high standards of corporate governance, the disclosure of information to investors and regulators as well as provision of audited financial statements amongst others.
Other advantages for a company listing include being able to raise additional funds through the issuance of more stock.
Companies who have listed also get to offer securities in the acquisition of other companies.
With a 120 truck fleet that includes between four to 30 ton rigs, a large operation that pushes over 45, 000 tons of foodstuffs and household goods through their Gaborone and Francistown warehouses, CA Sales will through the listing enjoy affiliation to the BSE international affiliations with institutions such as the World Federation of Exchanges (WFE), which represents 63 regulated exchanges across the world.
Other affiliations include those with the Committee of Southern African Development Council (SADC) Stock Exchanges (CoSSE), the United Nations Sustainable Stock Exchanges (SSE) Initiative and the African Securities Exchanges Association (ASEA).
The CA Group of Companies comprises of a varied cluster of companies such as CA Sales and Dafin Sales, which deal with the Group’s warehousing distribution networks, Kalahari Sales and Winchester Properties.