First Capital Group (FCG) is contemplating a listing on the Namibian Stock Exchange (NSX) to attract institutional investors after a disappointing response to its recent share offering.
The company, which had aimed to sell 40% of its shares to Namibian investors, saw only a meager 10% uptake, leaving its fundraising goals unmet.
“The uptake was very poor, and we didn’t even come close to the target. We planned to raise N$30 million, but the response from investors was far below what we had anticipated,” First Capital Founder,Martin Mwinga, told The Brief.
According to Equity Financing Brochure conducted by Eagle Wealth Management Limited, the offer included the sale of 10,000,000 ordinary shares of First Capital.
The minimum investment per applicant was set at N$2,500, with a minimum of 625 shares per applicant.
The offer commenced on 1st August 2023 and was initially scheduled to close on 31 December 2023, but it was later extended to the end of March 2024.
“We need to study the market carefully before deciding on the next steps, re-advertising it to a broader platform could be considered. The strategy needs to be determined. We can still wait for another 10 years as we are not in a rush,” the founder said.
“We’re open to considering listing on the NSX (National Stock Exchange) in the future. While we’ve been avoiding selling to institutions, we’re contemplating involving institutional investors in our next fundraising round,” he added.
Mwinga noted that one of the challenges faced was navigating Namibian regulatory restrictions, which limit the marketing of shares to the public for companies not listed on the NSX.
“The challenge we faced was that Namibian law is very strict. Because of the scheme we are using to sell shares, we are not allowed to market to the public through newspapers and other means as we are not publicly listed on the NSX. This also means we can’t reach the international market,” he said.
He said this constraint hindered the company’s ability to reach a wider audience, including international investors, potentially limiting the uptake of shares.
Meanwhile, the purpose of the offering is to raise funds for the acquisition of shares in FCG, to invest in its subsidiaries.
“Through this investment, shareholders will be exposed to the mortgage financing market, which has been and remains sound for investment,” Eagle Wealth Management said.
