BBS Bank shareholders will next month decide whether to back a proposal that could pave the way for the lender’s migration to the Botswana Stock Exchange (BSE) Main Board and a capital raising programme aimed at supporting its growth ambitions as a commercial bank.
The proposals are among key resolutions scheduled for voting at the bank’s annual general meeting on June 25, where directors will seek authority to apply for a Main Board listing and undertake a rights issue and issue of shares for cash.
BBS Bank has traded on the BSE’s Serala Over-the-Counter Board since September 2018, following its demutualisation from Botswana Building Society. The lender says the OTC platform was intended as a stepping stone towards a full stock exchange listing, giving the institution time to gain experience in a regulated securities market while preparing for a future Main Board debut.
Under BSE rules, companies may remain on the Serala OTC Board for up to five years before either migrating to the Main Board or de-registering. While that period has already lapsed, BBS Bank has secured an extension allowing it to remain on the platform until December 2026.
The board argues that a Main Board listing would improve the bank’s visibility, credibility and access to a wider pool of investors, while aligning it with more established players in Botswana’s banking sector.
In anticipation of the proposed migration, directors are also seeking shareholder approval for a capital raise through a rights issue and an issue of shares for cash. The funds would be used to strengthen the bank’s financial position and support its strategic transformation programme.
Shareholders will also be asked to approve the removal of certain protective provisions under the Building Societies Act, a move the board says would broaden the bank’s potential investor base and improve the prospects of a successful capital raising exercise.