Schlettwein commends Standard Bank’s successful IPO
By Hilary Mare
MINISTER of Finance Calle Schlettwein has commended Standard Bank’s successful IPO and impactful decision for increased local participation and ownership.
This was subsequent to Standard Bank’s landmark and historic milestone last week, marking the listing of 522,471,910 shares on the Namibian Stock Exchange with the addition of N$4.65 billion to the local stock exchange’s market capitalization. This was subsequent to an Initial Public Offering (IPO) of 81,140,449 shares, valued at N$722 million.
“The listing of this quantum of capital, and its associated oversubscription, are an expression of the strong confidence of Standard Bank Namibia in the domestic economy, on the back of its demonstrated business expansion and footprint spanning over 100 years as one of Namibia’s oldest commercial bank. Equally, the 10 percent empowerment stake to over 1,900 employees which preceded the IPO action, at the total initial value of N$300 million, manifests the spirit of inclusive development and wealth creation locally
“This IPO and its consequent listing outcome are testimony to the growth potential and investment opportunities in our economy. I am pleased to note that a great number of individual shareholders participated in the IPO and come to financial markets for first time, with over 12,500 applications received for shares from about 10,500 Namibians. Such broad-based participation equates to inclusiveness and expanded wealth creation,” Schlettwein said.
The Minister added that increased investment in domestic economic activity resonates well with the national development agenda for inclusive and sustainable growth, an agenda which places the people at the centre of development, and an agenda which recognizes that only inclusive growth is sustainable growth.
“Equally, it is pleasing to note that Standard Bank Namibia chose to do empowerment transaction with their own employees and made efforts to procure and facilitate the funding required for the transaction. I am informed that at today’s IPO price, the value of these shares have increased from the initial N$300 million to over N$445 million, creating real value and transformational investment for the employees.”
Schlettwein extended that the fact that the IPO was over-subscribed is testimony that there are more than sufficient surplus savings looking for assets.
“Indeed, the opportunities with high returns to do not only lie in the listed asset space. Unlisted investments in the real and services sectors of the economy promise for job creation opportunities and structural transformation of the economy. Together, the transactions provide for equitable economic empowerment and business growth opportunity with lasting impacts for the shareholders and net-economic flows for the country in the spirit of the envisaged Equitable Economic Empowerment Framework,” he explained.