The government yesterday launched its registration campaign to attract those interested in taking up shares in Telkom when the company lists early next year.
Despite the continuing weakness of the global telecommunications market and the strength of the rand, which will decrease the income from shares sold on the New York Stock Exchange, the public enterprise department has given no indication of a delay in the listing. It yesterday announced that a group of banks led by Deutsche Bank and JP Morgan would underwrite and market the offer.
Telkom is expected to list on the Johannesburg and New York stock exchanges before the end of the financial year. It is not yet known how much of the company will be for sale but the listing is still expected to be the largest in the country`s history.
The registration campaign launched yesterday seeks to attract those interested in the pre-listing offer of shares. All South African citizens will be eligible to buy shares at a discount to the official offer price. Historically disadvantaged individuals (HDIs), defined as groups unable to vote before 1994, will receive a greater discount and there are plans for loyalty reward and subsidy schemes.
The general offer, open only to individuals, requires a minimum application amount of R2 000 and there is no maximum. The HDI offer, named Khulisa after the Xhosa and Zulu term for fostering development, has a minimum application of R500 for individuals and R5 000 for groups such as stokvels. The Khulisa offer is limited to R5 000 per individual or R50 000 for any group.
Those making use of the Khulisa offer will be subject to a holding period and unable to sell their shares for three months after the listing date.
Share dealings costs are expected to be subsidised under Khulisa and shares will be held in an independently administered trust for two years. Shareholders who do not dispose of their holding within the two-year period will receive one free share for every five held, although this is subject to regulatory approval.
As the share offer has not yet been launched, the registration phase is only an expression of interest and those who register are expected to receive a prospectus and application forms sometime next year. Registration is open at www.telkomshareoffer.co.za, Post Office branches and participating branches of Standard Bank.
Related stories:
Govt gears up for Telkom share offer
Share