Botswana's biggest property company listing with an expected opening market capitalisation of P1.2 billion is set to double the size of the Botswana Stock Exchange's (BSE) property sector when New Africa Properties (NAP) lists on September 28.

NAP has placed P130,000,000 of stock ahead of the listing and is offering a further P20,000,000 by way of public offer, which opens today (Wednesday, August 24) on the Gaborone stock exchange. The public offer comprises 10 million linked units priced at P2 each.

NAP represents a consolidation of the property interests of Botswana-based multinational Cash Bazaar Holdings and partner companies.

The underlying portfolio consists of 65 properties, mainly retail centres, in Botswana and Namibia. NAP has indicated that it is considering additional interesting opportunities for investment in Botswana and the region.

Financial adviser to NAP is Imara Botswana, part of the Imara group of pan-African financial services companies. Grant Molyneaux, spokesman for Imara Botswana, said that the IPO and listing will probably double the size of the listed property sector of the BSE and thereby stimulate diversified investment interest and demand on the BSE.

Grant Molyneaux further notes: "This IPO paves the way for a significant boost to the development of Botswana's capital markets. The net effect will be to improve market liquidity and trading levels while contributing to the growth of a significant asset class.

"The emergence of NAP as a listed entity also underpins the growth of local entrepreneurship as the creation of the new company enables local business associates and partners of Cash Bazaar Holdings to realise considerable value from their property interests.

"The development of regional retail infrastructure will also benefit as the proceeds of the IPO will add considerably to NAP's resources and enable continued investment in major projects in the medium term."

Following on the back of a fully subscribed private placement and an attractive price for the linked units, Imara expects positive investor response to the public offer.

"Property is a key component of a diversified investment portfolio," says Molyneaux. "Private investors identify with the asset class as it offers enduring value and a stake in the development of the nation.

"Local associations are strong. Landmark Botswanan shopping developments like Gaborone's Riverwalk Mall and Plaza have a prominent place in the NAP portfolio."

Fifty-eight NAP properties are in Botswana, and eight in Namibia. The premises are located in urban centres across the two nations, with strong focus on heavily trafficked retail developments. Occupancy hovers around 98.5%. Grade A tenants predominate, including some of the leading retail chains in Southern Africa.

The offer closes on September 14.