HOMEC seeks to raise P100m upon listing
Plans to raise P100 million through the local bourse for the country’s first national lottery are on the cards.
HOMEC Chief Executive Officer ( CEO), Percy Raditladi said plans are underway to raise capital for the national lottery through a special purpose acquisition company ( SPAC) on the Botswana Stock Exchange ( BSE). “We are on course to list on BSE with the sole purpose to give Batswana an opportunity in this lottery business,” said Raditladi, adding that appetite to invest in the lottery business is high.
“We have tested appetite with potential large investors and the appetite is high for this. This marks a new era, a new chapter in Botswana and the capital markets,” said Raditladi who is better known as among the founders of Yarona FM. He said plans for an initial public offering ( IPO) through a special purpose vehicle are being rolled out. “IPO is at an early stage,” said Raditladi, adding that SPAC has two years to complete an acquisition or must return the funds to the investors.
HOMEC is a shareholder in the country’s lottery via a shareholding in Colmar Enterprises which is the second largest shareholder in Grow Mine Africa, trading as Dineo Tsa Pula, with potential of holding a ten- year license.
Last year, the Botswana Gambling Authority unveiled Grow Mine as the preferred bidder to the country’s first National Lottery.
However, reserve bidder, Ithuba Solutions tried
to interdict the decision, raising numerous irregularities relating to the application processes for the National Lottery Licence in Botswana, following a Request for Applications ( RFA) including the evaluation, adjudication and announcement of Grow Mine as the preferred applicant.
Among Ithuba’s complaints was concern that PPADB procedures and
Regulations were not followed in the adjudication of bids/ applications.
Grow Mine countered that such statutes promulgated under public procurement are only applicable to Central Government and local authorities, while state owned enterprises ( parastatals) have their own procurement procedures, which differ from one entity to the other