Stanbic Bank Botswana is seeking a valuation of approximately P6.87 billion as it prepares to list on the Botswana Stock Exchange (BSE), in an offer that will give local investors an opportunity to acquire a stake in one of the country's established commercial banks.
The bank's abridged prospectus, published on October 29, sets the offer price at P4.30 per share, with up to 319.36 million existing shares, representing 20% of the bank's stated capital, being offered to investors. The total offer is valued at approximately P1.37 billion.
The transaction is a sale by the bank's existing shareholder, Stanbic Africa Holdings Limited, a wholly owned subsidiary of Standard Bank Group. No new shares will be issued, meaning Stanbic Bank Botswana will not receive proceeds from the offer.
Instead, the listing is intended to broaden the bank's shareholder base, increase local ownership and meet the public shareholding requirements for admission to the BSE's Main Board. It will also allow Botswana investors to participate in the bank's future performance through an equity investment.
The offer is split between a private placement of 255.49 million shares to selected institutional investors and a public offer of 63.87 million shares. At the offer price, the public portion is worth approximately P274.65 million, while the private placement accounts for the remaining P1.10 billion.
The prospectus states that the bookrunner has received irrevocable undertakings from institutional investors for up to 767.95 million offer shares, equivalent to 240% of the total offer, subject to final allocation. The commitments indicate substantial institutional interest, although final allocations will depend on the offer process.
The public offer opens on October 30 at 09:00 and closes on November 27 at 16:30, Botswana time. Results are scheduled for publication on December 4, with the bank expected to list on December 7, subject to the necessary approvals and listing requirements.
Following the transaction, Stanbic Africa Holdings will retain an 80% stake in the bank, while institutional placees will hold 16% and public investors 4%. The BSE has approved a 20% free float for the listing. Stanbic Africa Holdings will lock up 75% of its retained shares from the listing date, with half of those locked-up shares due to be released after 12 months and the remainder after 24 months.
The proposed valuation comes as Stanbic Bank Botswana reports a profitable business with a sizeable balance sheet. At December 31, 2025, the bank had total assets of P27.6 billion and customer deposits of P22.7 billion. Its financial year ends in December, distinguishing its reporting cycle from that of several other banks in Botswana.
For the year ended December 2025, Stanbic reported profit after tax of P709.7 million, compared with P708 million in 2024. Total income increased to P2.02 billion from P1.95 billion, while non-interest revenue rose sharply to P941.6 million from P579.5 million.
Net interest income, however, declined to P1.07 billion from P1.37 billion in 2024. The increase in non-interest revenue helped offset that decline, leaving total income higher year on year. Operating expenses increased to P979.8 million from P958.4 million.
The bank's interim results also show continued balance-sheet growth. For the six months ended June 30, 2026, total assets reached P29.33 billion, while customer deposits rose to P21.78 billion from P20.27 billion at the end of 2025. Loans and advances to customers increased to P14.29 billion from P13.76 billion over the same period.
Stanbic reported interim profit after tax of P354 million for the six months to June 2026, with total income of P1.06 billion. These figures provide a snapshot of its performance ahead of the proposed listing, although the interim results cover only half of the bank's financial year.
The prospectus forecasts profit after tax of P711.9 million for the full 2026 financial year, rising to P797.5 million in 2027, P919.9 million in 2028 and P1.03 billion in 2029. These are directors' forecasts, not audited results or guaranteed outcomes, and depend on assumptions about the economic and operating environment.
The bank's forecast return on equity is 23.1% for 2026, increasing to 26.7% by 2029. Its cost-to-income ratio is projected to rise to 51.2% in 2026 before improving to 48.1% by 2029.
For investors, the offer price and implied market capitalisation provide the starting point for assessing the bank's value against its earnings, assets, risks and future prospects. The prospectus also highlights risks tied to Botswana's economic conditions, credit quality, liquidity, technology and cybersecurity, regulation, and the bank's franchise agreement with Standard Bank Group.
Investors must apply for at least 250 shares, with further applications in multiples of 10. Applications must be paid in full in pula, and applicants must have a Central Securities Depository Company of Botswana account through which their shares will be held.