Letshego’s profits surprise on the upside

16 February 2018
Namibia Stock Exchange (NSX) listed company Letshego Holdings Namibia, expects its profit after tax for the year ended 31 December 2017 to be 10 to 15 percent higher than 2016 and 8 to 12 percent higher than set out in its Initial Price Offering.
Letshego received a lukewarm response from institutional investors when it listed at the end of September last year. The company listed at a share price of N$3,80 but was trading around N$3,89 this week.
It had hoped to sell 100 million shares for N$470 million at an initial offer of N$4,70 per share, but only raised N$182 million despite reducing the share price to N$3,80 a few days before the offering closed.
IJG Securities Managing Director, Lyndon Sauls, believes investors may now make a U-turn and buy shares in Letshego, amid expected good financial results.
“They are quite a bit ahead of forecast. It’s quite positive; they were spot on in the prospectus before listing. We are expecting good things from them. There is nothing wrong with their model. Their business is sound, it’s quite positive and we look forward to better results in the future.”
Sauls said institutional investors, who were a bit sceptical, will now be encouraged to buy-in into the business after the positive financial results.
“There were a lot of questions when Letshego listed. They were just coming to market, the micro finance business was always under question, but if you have a look at their numbers, I think they are doing a stellar job,” Sauls said.
During the initial listing, members of the public and non-institutional investors bought shares worth N$40 million, while N$142 million was raised through offers from leading institutional investors.
Letshego Namibia's market capitalisation stood at N$1,9 billion upon listing, representing six percent of the NSX's primary listings market capitalisation.



The Windhoek Observer is an English-language weekly newspaper, published in Namibia by Paragon Investment Holding. It is the country's oldest and largest circulating weekly.

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