Letshego extends IPO, reduce price offer
Investors keen to get their hands on Letshego Namibia Holdings' shares before the company lists on the Local Index of the Namibian Stock Exchange (NSX) this Friday can now do so at a reduced price.
Letshego Namibia Holdings on Friday announced an extension to their initial public offering (IPO) deadline to 12:00 tomorrow.
In addition to the extended deadline, Letshego Namibia also reduced the share price offer from N$4.70 to N$3.80. This means that all individuals who applied for shares at the N$4.70 price will be awarded 23.5% more shares given the revised reduction in share price.
Commenting on the latest development Letshego Namibia CEO Ester Kali said: “As is the case with all company IPO's internationally, Letshego has set its own minimum targets in order to achieve listing objectives. We are progressing well towards these; however as of today we are not quite there yet.
“Extending our deadline by a few days and offering a reduced price should enable us to meet the last few hurdles towards a listing, while further enhancing the inclusive nature of our Ekwafo Letu IPO,” she said.
Target price
Namibia Equity Brokers (NEB) on Friday – before Letshego Namibia's announcement – released its position paper on the company. Its composite fair value assessment put NEB's target price at N$4.67 per share. At the time, it was lower than Letshego Namibia's original share offer price of N$3.70.
NEB's composite fair value assessment is based on four methodologies: the multi-stage dividend discount model (DDM), the constant DDM, the forward price-earnings ratio (P/E), and the book value per share (BVPS).
“With the increasing requirements of Regulation 28, the listing will widen the investment universe and afford the investors diversification scope. It is imperative to see more local listings on the NSX, to give the investing community an opportunity to acquire equity ownership and participation in local companies,” NEB analyst Elwis Katowu said.
“Our composite fair value, which was arrived at by looking at the stock through the prism of the above-mentioned four different valuation methodologies, is nevertheless 3c per share lower than the listing price of 470 cents per share,” Katowu said.
Letshego Namibia says the minimum number of shares applicants have to purchase remains constant at 200 per applicant. With Letshego Namibia's reduced share price offer of N$3.80, applicants will be entitled to 47 more shares for every 200 shares they apply for.
Letshego Namibia Holdings on Friday announced an extension to their initial public offering (IPO) deadline to 12:00 tomorrow.
In addition to the extended deadline, Letshego Namibia also reduced the share price offer from N$4.70 to N$3.80. This means that all individuals who applied for shares at the N$4.70 price will be awarded 23.5% more shares given the revised reduction in share price.
Commenting on the latest development Letshego Namibia CEO Ester Kali said: “As is the case with all company IPO's internationally, Letshego has set its own minimum targets in order to achieve listing objectives. We are progressing well towards these; however as of today we are not quite there yet.
“Extending our deadline by a few days and offering a reduced price should enable us to meet the last few hurdles towards a listing, while further enhancing the inclusive nature of our Ekwafo Letu IPO,” she said.
Target price
Namibia Equity Brokers (NEB) on Friday – before Letshego Namibia's announcement – released its position paper on the company. Its composite fair value assessment put NEB's target price at N$4.67 per share. At the time, it was lower than Letshego Namibia's original share offer price of N$3.70.
NEB's composite fair value assessment is based on four methodologies: the multi-stage dividend discount model (DDM), the constant DDM, the forward price-earnings ratio (P/E), and the book value per share (BVPS).
“With the increasing requirements of Regulation 28, the listing will widen the investment universe and afford the investors diversification scope. It is imperative to see more local listings on the NSX, to give the investing community an opportunity to acquire equity ownership and participation in local companies,” NEB analyst Elwis Katowu said.
“Our composite fair value, which was arrived at by looking at the stock through the prism of the above-mentioned four different valuation methodologies, is nevertheless 3c per share lower than the listing price of 470 cents per share,” Katowu said.
Letshego Namibia says the minimum number of shares applicants have to purchase remains constant at 200 per applicant. With Letshego Namibia's reduced share price offer of N$3.80, applicants will be entitled to 47 more shares for every 200 shares they apply for.
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