RNB Properties Limited, the first company to list on the Maseru Securities Market (MSM), is aiming to raise M68 million to expand its operations.
Established in 2010, the company has significant investments in undeveloped residential and commercial land in Lesotho.
It has four integrated real estate core businesses, namely property management and sales; property development; maintenance and renovations as well as property consulting.
Following it listing on the MSM earlier this month, the company plans to sell 6, 6 million shares to the public through the securities
market to raise the M68 million capital it requires to grow its business. This amounts to 33 percent of the company’s total 20 million shares.
In an interview this week, the chief executive officer of RNB Properties, Bataung Mokotjo, said the company’s expansion plans had been hampered by lack of funds.
She said they had opted to raise money via listing after struggling to raise the necessary funds through traditional financial instruments.
“While sourcing funds, we came to a point where we had exhausted all the possibilities that were available,” Ms Mokotjo said.
“We then realised that listing on the MSM was the only option left for us. The company is planning to sell 6, 6 million ordinary shares to the public through the MSM to raise M68 million as capital.
“We need the capital to grow our core business units which include property management, brokerage, property refurbishment and maintenance and property development. We are in the process of acquiring land to build a land bank as part of our property development project.
“There are various prospects in the property market. There are gaps that need to be filled and many areas that are underdeveloped. So, to us, this translates into many different opportunities we can tap into to expand our business,” Ms Mokotjo said.
She said they had already sold some shares through the MSM. However, the bulk of the shares were still available, she added – Lesotho Times (Bereng Mpaki)
“The Governor of the Central Bank of Lesotho
The Deputy Governors
Distinguished guest, I greet you.
Today RNB Properties is the first company to list its ordinary shares on the Maseru Securities Market.
My heart is glad to witness with you, this milestone.
The business journey and the listing journey has truly been one of endurance.
The business journey so because the business climate in Lesotho is a real challenge. We operate in a small economy, which lacks; skills, relevant data, industry related education and trainings, mentors, amongst others. The biggest stumbling block to business growth however, is access to finance.
This is why there is no diversity in the private sector. All of us entrepreneurs, start businesses which have ease of entry, be as it may, most of these businesses do not make it past 5 years.
The listing journey on the other hand, presented its own tests especially as, we were the pioneers. There are instances where we would find ourselves stuck, without a clear direction or solution.
A few times such as this when faced with a mountainous task of figuring things out, Ntate Leonard, Katleho Securities would say, ‘Mhh, this is difficult,’ and indeed, it would be difficult.
As an entrepreneur however, this is precisely the life you get used to, no matter how hard it is, we keep going. We leave no stone unturned.
We started this exercise in 2018, we were full of energy, and we were hopeful. The anticipation was that within months, we would be finished, not years.
There was a lot of learning, many intricate steps to follow, various stakeholders to meet, to convince, to convert.
The toughest part however, was always having to wait to hear from the regulators after a submission. We would hope for the best but prepare for the worst.
The first of the approvals, we received in 2019, needless to say the rest of the process took place in the most uncertain of times, in the thick or Covid, amid lockdowns and departmental closures.
To be standing here today, feels unreal, as it was impossible to picture ourselves at the end, on the other side.
I would therefore like to take the opportunity to register my vote of thanks on behalf of RNB Properties LTD to: The Maseru Securities Market for their support in this listing project, our sponsor of the IPO Katleho Securities, The Ministry of Trade and Industry, other professional bodies for their tireless engagement, all levels of government leaders, board members, and RNB Properties employees for their tenacity. Last but not least, the investors who showed confidence, thank you.
The listing of RNB marks a new day for the company, the beginning of the implementation of our expansion plans.
After the listing, we will be able to participate in more development opportunities, strengthen the position of the business as a strong player and to bring high returns to investors and shareholders.
This listing will also inspire other companies to use this financial instrument to grow their businesses as well.
In closing, allow me to impress upon you, our distinguished guests to be excited about this IPO, come on board, participate, trade, together let us make this a successful listing and for others to follow.
BoMme le BoNtate, I thank you.”
Speech by Bataung Mokotjo
RNB Properties CEO
Company Listing Ceremony
06/12/2021
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