About the IPO
M.C.B Stockbrokers Limited is acting as Sponsoring Broker on the initial public offering (“IPO”) of Emtel Limited (“EMTEL”) which will join the Official List of the Stock Exchange of Mauritius Ltd (“SEM”) as from 5th July 2024.
Valued independently at MUR 12bn(1), EMTEL will be one of the handful listed domestic companies with a market capitalisation exceeding MUR 10bn and is offering the opportunity to investors and the general public to become shareholders in EMTEL and subscribe to 25% of its shareholding.
23.00
MUR
Issue price / share
1,000
shares
Minimum investment
(additional multiples of 100 shares)
5.4%(2)
in FY24
Forecast dividend yield
(for new investors) based on introductory price of MUR 23.00/share
29 May 2024,
9.00 a.m.
Offer opens
21 June 2024,
2.30 p.m.
Offer closes
| Issuer | Emtel Limited |
| Main industries in which company operates | Telecommunication activities, Data Centre, Submarine Cable Capacity, Fintech |
| Securities offered | Ordinary shares |
| IPO type | Offer for sale (partial sale by existing shareholders) |
| Maximum amount available for subscription | MUR 2.6 billion |
| Issue price | MUR 23.00 per share |
| Independent valuation by KPMG | MUR 26.41 per share(1) |
| Implied discount to introductory price | Approx. 13% |
| Dividend policy (reviewed every 3 years) | Distribute a minimum of 75% of its full year profits after tax (subject to applicable laws and regulations and the discretion of EMTEL's Board) |
| Forecast dividend yield (for new investors) based on introductory price of MUR 23.00/share | 5.4%(2) in FY24 rising to 6.7% in FY25 and to 7.7% in FY26 |
| Minimum investment | 1,000 shares (additional multiples of 100 shares) |
| Expected market capitalisation on listing debut | MUR 10.5 billion |
| Shareholders (Pre-IPO) | Currimjee Jeewanjee and Company Limited (CJ): ~75% Indian Continent Investment Limited (ICIL): ~25% |
| Shareholders (Post-IPO) | CJ - 60%
ICIL - 15% IPO subscribers - 25% |
| Lock-in period for Controlling Shareholders | CJ and ICIL have agreed not to dispose of their post-IPO holdings for a period of 6 months |
| Offer opens | 29 May 2024, 9.00 am |
| Offer closes | 21 June 2024, 2.30 pm |
| Settlement date | 26 June 2024, 2.30 pm |
| Announcement of allocation results | 3 July 2024, 2.30 pm |
| Listing and commencement of trading on SEM | 5 July 2024, 10.00 am |
| Refund of any excess application monies | 10 July 2024, 4.00 pm |
Capital invested in ordinary shares are neither guaranteed nor secured.
Any investment in ordinary shares is subject to a number of risks, including a risk that such investment may be lost entirely or in part. Additionally, EMTEL operates in the telecom industry and is therefore also exposed to certain risks inherent to that sector.
Prior to making an investment decision, prospective investors should carefully consider the risks and uncertainties outlined in Section 10 (“Risk Factors”) of the Prospectus and seek appropriate professional and independent advices. Some key risks which prospective investors may wish to consider before investing in EMTEL's ordinary shares are:
- industry risk (risks linked specifically to the telecom sector including but not limited to competition, regulatory, high capital expenditure requirements, high gearing (debt level) ratio, cyber attacks, network disruptions);
- market risks including potential capital losses and lack of liquidity when disposing of the shares on the SEM;
- projected dividends are not guaranteed; they will depend on EMTEL's profitability and cash flows and remain subject to the discretion of EMTEL's Board and to any applicable laws or regulations.
We do not recommend investing 100% of your investible funds into one single stock.
How to subscribe?
Prospective Investors can apply for the shares online at invest.mcbcapitalmarkets.mu.
Eligibility to subscribe digitally
Only selected individual applicants can apply online. Other investors (joint, minors, corporate bodies and institutional applicants should use the Manual subscription option to subscribe manually). You may be required to produce in person your original NIC, proof of bank account and KYC documents for identity and account confirmation.
Prospective Investors opting for a manual application should fill in and sign the Application Form, provided in the Prospectus. The Application Form must be returned with the payment instruction and should reach M.C.B. Stockbrokers Limited or not later than 3:00 pm on 15 November 2024.
Resources
Notes:
(1) Independent valuation performed by KPMG Advisory Services Ltd determined the equity value of EMTEL as MUR 12.028bn.
(2) A cash dividend of MUR 130 million has been paid in calendar year 2024. Subject to the continued satisfactory performance of the business, the Board of EMTEL expects to declare additional cash dividends of MUR 570 million in 2024.
FAQs
By investing in the ordinary shares of Emtel Limited, investors may benefit from two sources of returns:
i) Dividend income - Projected dividend yield for investors subscribing to the IPO based on the introductory price of MUR 23.00/share is 5.4% in Financial Year 2024 and is expected to rise to 6.7% in Financial Year 2025 and to 7.7% in Financial Year 2026, based on forecast dividend payments by the company.
ii) Potential price appreciation - Should the price of Emtel Limited rise above the introductory price, this will create the opportunity for IPO investors to realise capital gains if the shares are sold at a higher price.
Prior to making an investment decision, prospective investors should carefully consider the risks and uncertainties outlined in Section 10 (“Risk Factors”) of the Prospectus and seek appropriate professional and independent advices. Some key risks which prospective investors may wish to consider before investing in Emtel Limited's ordinary shares are:
- Industry risk (risks linked specifically to the telecom sector including but not limited to competition, regulatory, high capital expenditure requirements, high gearing (debt level) ratio, - cyber attacks, network disruptions);
- Market risks including potential capital losses and lack of liquidity when disposing of the shares on the SEM;
- Projected dividends are not guaranteed; they will depend on Emtel Limited's profitability and cash flows and remain subject to the discretion of the company's Board and to any applicable laws or regulations.
No. You can subscribe to the ordinary shares even if your bank account is not with the MCB. Our online subscription portal caters for both MCB Juice and non-MCB Juice users.
A CDS account is mandatory to hold the shares. If you do not have a CDS account, MCB Stockbrokers Limited will open an account free of charge for you using details provided in your application documents.
The shares will be transferred on the first day of trading on 5 July 2024. Transaction fees applicable on the Stock Exchange of Mauritius (currently a maximum of 1.25% of the subscription amount) will be applicable and are payable on the settlement date as part of your settlement amount.
In case of an oversubscription, Emtel Limited will determine the allotment criteria and any excess application monies will be refunded without any interests and net of bank charges to your bank account within three (3) Business Days of the First Trading Day by 4:00 pm.
As part of the application process, we will conduct a Suitability Assessment based on your risk appetite and tolerance and provide an indication as to whether the intended investment may be suitable for you. You can then decide whether to proceed with the intended investment or not. In case of doubt, we recommend that you consult a professional financial advisor before making any investment decisions.
No. The subscription process requires that you fill in and submit an application form either manually or via our online subscription platform.
For an individual investor subscribing manually or via the online subscription portal, the following is required:
(1) National Identity Card.
(2) A utility bill (less than 3 months old) in the name of the applicant.
*The birth certificate or marriage certificate will also be required only if the utility bill is in the name of the parent or the spouse.
(3) A proof of bank account (IBAN or upper part of a bank statement).
Annex 1 of the Application form lists all the ‘Know Your Client’ requirements for non-individual investors.
Disclaimer
M.C.B Stockbrokers Limited ("MCBSB") holds an investment dealer (full service dealer including underwriting) licence from the Financial Services Commission (Licence No. IP14000001). MCBSB issues from time to time publications on specific companies, groups or sectors. Our publications should not be construed as offers or solicitations to buy or sell securities. The information contained herein have been compiled or arrived at by MCBSB from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. All the information in this document remains subject to qualifications, conditions or more detailed description set out under the offer documents relating to the IPO. Any forecast or projections are also subject to further information detailed in the offer documents. It remains the recipient's sole responsibility to ensure that they have read and understood the terms and conditions of the IPO. The recipients are advised to seek professional advice prior to making any investment decision. This document has been provided solely for the assistance of recipients but should not be relied upon as authoritative or taken in substitution for the exercise of judgment by any recipient. Neither MCBSB, nor any of its director, officer or employee, accepts any liability whatsoever for any direct or consequential loss arising from any use of our publications. Furthermore, our publications may not be reproduced, distributed or published in whole or in part for any purpose, unless prior authorisation is obtained from MCBSB. This document remains subject to the legal notices and disclaimers found on our website: https://mcbcapitalmarkets.mu/legal-notice.