Frequently asked questions on the BTCL IPO

What is an IPO?An Initial Public Offering, or IPO, is the first offer by a company of its shares for sale or subscription by members of the public.  The Government is selling 49 percent of its shares in BTCL through an IPO.

Does this IPO mean BTCL is being sold?Yes; however, Government is only offering 49 percent of the shares of the company, of which 5 percent has been reserved for BTCL employees. The remaining 51 percent of the shares will be retained by government.What percentage of BTCL will be put on the market?49 percent of the shares of BTCL will be offered to the public. Of this, 5 percent will be offered to citizen employees of BTCL. The remaining 51 percent of the shares will be retained by Government.How many shares are being offered?The Offer comprises 462,000,000 Shares of which 250,000,000 are to be issued and allotted by the Company and 212,010,000 Shares to be sold by the Selling Shareholder. Simply put, 462,000,000 Shares of BTCL are offered to the public through this IPO How will the IPO process ensure that small investors’ interests are safeguarded?A share allotment strategy is in place to ensure that all citizens are given equal opportunity to buy BTCL shares. Essentially all offers are treated as equal. However, smaller investors will be given preference to ensure that all their offers are accepted in the event there is an oversubscription. This means, in the event of an oversubscription, you are not guaranteed to be allocated all shares you apply for.What happens if there are more Offers than shares on offer? This situation would be called an oversubscription. The Allotment Committee would then sit and decide how to ensure as wide a spread as possible is achieved of shares allocated. In an oversubscription situation one may not receive the total number of shares they applied for. The funds would be returned to the investor for the shares they did not get. What is an IPO Opening/Offer Opening?The opening of the IPO or the Offer refers to the start date for the period in which parties interested in purchasing shares can apply for them. Applications for the shares can be made throughout the stipulated period in which they will be on offer. The Offer Period is from 09h00 on 11th January 2016 to 17h00 on 4th March 2016. Offers WILL NOT be received after this date.When will the BTCL IPO open?The BTCL IPO offer period, the period in which parties interested in purchasing shares can submit applications for them, is from 11 January 2016 at 09h00 to 04 March 2016 at 17h00. During this period, completed BTCL IPO application forms, proof of Botswana citizenship, and payment of shares will be accepted by the receiving bank, Barclays Bank of Botswana. Offers WILL NOT be received before or after these dates.