By Hilary Mare
LETSHEGO Holdings Namibia Limited´s (Letshego Namibia) is expecting profit after tax for the year ended 31 December 2017 to be materially 10 percent to 15 percent higher than that reported for the period ended on 31 December 2016.
In an announcement on the Namibia Stock Exchange this week, the company also highlighted that profit after tax is expected to be eight percent to 12 percent higher than as set out in the IPO prospectus dated 25 August 2017.
“In view of the above, shareholders and investors are advised to exercise caution when trading in the company´s securities until such time as a detailed announcement is made. Detailed results for the year ended 31 December 2017 are expected to be released on or about 5 March 2018 following the completion of all internal governance procedures,” the company announced.
Letshego’s history dates back 20 years to Edu Loan Namibia, which commenced operations in 1997 to offer consumer and micro-lending services. In August 2008, Letshego Holdings Ltd (LHL), a pan African Group that is listed on the Botswana Stock Exchange (BSE), acquired 100 percent of Edu Loan, thereafter rebranding to Letshego Namibia.
Letshego Namibia has over 50,000 customers, 98 members of staff and 16 customer access points. It was awarded a banking license by the Bank of Namibia in July 2016.
It listed on the Namibian Stock Exchange during September 2017.
On listing, Letshego Namibia’s market capitalisation was N$1.9billion which represents 6 percent of the NSX primary listings market capitalisation.
Over 3,600 qualifying applications, valued at a total of N$182 million, were received during the four week share offer period. Members of the public and non-institutional investors contributed N$40 million toward this total, with the remaining N$142 million being raised through offers from leading institutional investors. Post listing, Letshego Holdings Limited, the majority shareholder in Letshego Namibia, will reduce from 85 percent to 79 percent.
Commenting on this milestone achievement within Letshego Namibia growth story, CEO, Ester Kali at the time said: “Our team has travelled more than 7,000 kilometres across Namibia to offer this unique investment opportunity to members of our community across 13 regions. By listing, Letshego Namibia has achieved its objective to increase our local shareholding and demonstrated its commitment toward meeting the Government’s 2020 mandate for increased local shareholdings.”
Letshego Namibia’s unique share offer was named, ‘Ekwafo Letu’ which means ‘support’, a term synonymous with the Letshego Group’s brand promise and commitment within all 11 markets across Africa.
Over 75,000 people were empowered with knowledge and facts in fundamental financial skills and share investment opportunities. During the IPO period, the inclusive finance brand connected 180,000 people across its social media platforms, and recorded 21,000 active discussions around Ekwafo Letu’s offering.
Kali added: “Not only does our listing demonstrate our commitment to Namibia, but also our focus on delivering value to more than 3,200 PDN’s and companies who have invested in our future growth story. We wish to thank all our stakeholders, the public, companies and investors for their invaluable support and personal contribution. We look forward to a successful partnership as we expand our business and access to simple and appropriate financial solutions for Namibians who typically do not have access to banking products.”
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