Bank Windhoek lists in June
Bank Windhoek Holdings Limited is set to float 25% of its shares on the Namibian Stock Exchange (NSX) on 20 June, The Economist has established.
A source close to the deal told The Economist on Thursday that Bank Windhoek, the only 100% locally-owned commercial bank in the country, has already obtained relevant approvals from the NSX and the Bank of Namibia for its Initial Public Offering. Preparation for the IPO is handled by IJG Securities together with PSG Konsult, appointed also as sponsoring brokers and book-builders.
Bank Windhoek’s floated share capital is set to be just above the minimum free float threshold required by the NSX on first listings.
Meanwhile, another source confirmed that Bank Windhoek will release its prospectus to the general public around the first week of May. According to the NSX rules a company offering an IPO must release its prospectus to the public at least one month before the actual listing date for inspection by regulators and investors.
Contacted to provide more information on the latest developments, Marlize Horn, Bank Windhoek’s Executive Officer: Marketing and Corporate Communication Services was philosophical in her response.
She said: “In a statement issued in January 2013, Bank Windhoek Holdings Limited (BWH) chairman Koos Brandt, emphasized that “the listing of a company is a regulated process and therefore the exact timing of the listing will only become clear as the process unfolds.”
Horn added that the regulatory process is underway therefore it would be premature and at odds with the conditions set by the regulators for the bank’s management to disclose any information related to the application to list its shares on the main board of the NSX.
“Speculation about the potential listing date is discouraged and holders of BWH shares are requested to exercise caution in dealing with their shares. As soon as we are in a position to provide new information, BWH will make an appropriate announcement to the media and members of the public,”said Horn.
Earlier this year, Brandt announced in a statement that the bank had applied to the local bourse for a listing on the main board. The announcement by Brandt came after the Bank Windhoek Holdings’ board gave its blessings last November after the proposal received a positive vote from shareholders at the Annual General Meeting. A possible listing has been on the cards since plans by South African banking giant, Absa to obtain a 49.9% shareholding in the bank through Absa’s parent company, Barclays, fell through at the last minute.
At the time, the Bank of Namibia had approved the acquisition of Bank Windhoek by Barclays subject to the condition that Bank Windhoek should list on the Namibia Stock Exchange within a prescribed period ranging from “18 to 24 months or longer than that” after the approval date.
Through the Initial Public Offering, Bank Windhoek will become the second bank in the country to list on the NSX following FNB which has a 42% local ownership. Standard Bank and Nedbank are still 100% owned by parent companies in South Africa.
In its latest financial results published in September last year, Bank Windhoek had total assets of around N$18.6 billion making it the second largest bank by value after FNB.