Local company sells shares

MASERU — Morou Development Limited, the company that owns Pioneer Shopping Mall, is selling shares to the public. According to the prospectus the public offer opened on December 1 but company officials say the shares only started trading yesterday. There are 175 000 shares on offer at M600 each. Morou wants to raise M105 million which will be used to construct phase two of the mall. The offer will close on January 20 next year and the shares are being sold at Pioneer Mall. Morou is the first local property company to offer shares to the public. Phase I of the mall was opened in November 2009 with 14 500 lettable square metres. It is currently 100 percent let with a tenant list that includes Edgars, Nedbank, Standard Bank, Pick n Pay, Life’s Comfort Solutions, Foschini and Markham. Phase II, which is expected to be completed in November 2012, will have 5 725 lettable square metres. So far 77 percent of the space has already been booked by Mr Price, Markham, Total Sports, Exact, Sterns, Fashion Express, FNB, Identity, Clicks and Truworths. Once Phase II is completed the mall will have 20 225 square metres in rentable space. For the year-ended March 31, 2011 Morou had M10 954 126 net profit before interest and tax. Company directors however project that from November next year when Phase II is completed that figure will jump to M21 340 394. The whole property will be worth M284 538 588. Rentals are forecasted to escalate by between eight and 10 percent per year. The value of the mall itself will escalate by about 7.5 percent, according to projections. The shares will be tradable on the open market. That means even after the public offer is closed you can still buy the shares from other investors. Danny Bothma, one of the directors, said they are looking for people who are interested in a long term investment opportunity. He said the motive behind the public offer is to raise capital and give people a chance to invest in property. “This is an investment that offers better return,” Bothma said yesterday. He said so far the uptake of the shares has been encouraging. “We had not advertised or aggressively marketed the public offer but the response has been good.” He said this was an opportunity for people to invest in property. Lesotho’s property market has been experiencing a boom for the past three years. Investors are putting their money into commercial property.

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31 thoughts on “Local company sells shares

  1. Thoughts Provoking December 15, 2011 at 3:05 am - Reply

    This some like some good news to impecunious gents like me. I hope this is not yet another elaborate ruse designed to swindle money out of us.

    Thoughts Provoking.

  2. Piece of advise; before u buy the shares, seek advise from structural engineers. There are allegations that the structural integrity of the mall is questionable.

  3. Careful, before you ditch out your penny, do a thorough finacial research of the Company, who are incharge and their backround (history/ transparency)…see through the whole deal or the repeat of MKM…WORD OF ADVICE

  4. These guys are issuing shares to the general public. I hope I am not wrong to conclude that they are now a Public Company. To my recollection I have not seen any notice in the newspapers or heard them annoncing an AGM, or publishing any financial statements. I may be wrong but honestly one would like to see their financials before risking our hard earned savings, lest we jump into an MKM type chameleon trap as TRUTH has advised.

    As to value for money, as KOKOTA has mentioned above, why did MORUO build the first

  5. Damnn, technology!

    But anyway why did MORUO saw it wise to build such an expensive building in a gonga while they could have purchaased some good affordable sites on fair terrain? Why do they now have flatten a mountain to build a second phase? Who are these structural engineers allowing these non-sensical developments to take place? Who is benefitting by making this project so exenssive while it could have been cheaper? If the company was a private company that was wasting resources through its private shareholders and investors one would not worry. Now the general public is being wooed into this. I wish the Registrar of Companies can confirm that MORUO is a Public Company of good standing relating to the office of the Registrar, otherwise mona k e Maholi a patile Maeba.

  6. To answer some of the above questions and comments, please know that Moruo’s has been a Public company since inception. Reports on financials are available to anyone on request, please contact Mark at Moores Rowland for a copy. On “land issues” if you are travelled you might have noticed that buildings can and are all over the world built on various grounds. See indeppendant surveys on the LOCATION of Pioneer mall, and you will see IT IS built in one of the best LOCATION’s in Lesotho.
    Moruo is SELLING SHARES it is NOT creating a get rich quick or piramid scheme – it is NOT a “mpate sheleng”. Attain a prospectus off the http://www.pioneer.co.ls website to see who the major shareholders are. 8 of Lesotho’s top business people.
    If there were any “questionable” issues on the structure of the mall, why then would the best insurance group in the SADC, and the banks be backing this project up 100%?

    It is negative comments such as these that have kept this country’s economic development so far back in the dark ages. when MTN or Vodacom sold shares to the public, did you question their
    ALL DOCUMENTS PERTAINING TO THE MORUO’s SALE OF PUBLIC SHARES HAVE BEEN SIGNED AND STAMPED BY THE REGISTRAR. There is NOTHING to hide. it’s a good opportunity and a fantastic deal. OPEN YOUR EYES.

  7. @Jessi, The is no prospectus on the website you refered us to. If you can please paste proper site for the prospectus. We would also want to get the official opinion of the central bank regarding this matter. I urge Central bank to come out now loud and clear whether the public should go to Lesotho stock exchange to buy shares of the now listed moruo development. As usual, our poor central bank will not come out until it will be too late at which they will only be condemning the investors.

  8. Ache le lona joale lea hana batho ba Molimo whats all this negative comments is M600.00 too much to deserve these remarks ho hana lona oa tseba. This is a life time opportunity its either you take or leave it.

  9. Okay Jessi you have good valid points but what will be the capital structure of the project? will it be all equity financed or will there also be debt financing? And if its all equity financed were the its implications taken into consideration? What are the projected cashflows and how long is the payback period before investors(shareholders) receive their dividends? Infact what will be the payout policy? Will dividends be paid or will they be re-invested as capital gains?

    I think all these facts have to be explained to the general public so that they know exactly what they are getting themselves into, that this aint a quick rich scheme or a “mpate sheleng” as some people peceive it to be.

    To the general public, my is advice that this is a good long term investment with great benefits in the future BUT DONT EXPECT QUICK RETURNS but it will require abit of patience.

  10. I am not interested in investing, but I do not think this is anything like MKM. At least with this, it is clear where the profits come from (leasing retail space). With MKM, it’s “Invest M12,000 and get M20,000 in 1 year”. How does my money jump from M12k to M20k in one year? “Oh, MKM invests your money.” How does MKM invest my money? “Ummmm…”

  11. M600 is too expensive. Telkom SA share price is well below M50, and here we have this unknown company selling shares at M600 per share. Are you kidding me? Basotho bulang mahlo, otherwise letla lula le jeoe!

  12. Guru said “Okay Jessi you have good valid points but what will be the capital structure of the project? will it be all equity financed or will there also be debt financing? And if its all equity financed were the its implications taken into consideration? What are the projected cashflows and how long is the payback period before investors(shareholders) receive their dividends? Infact what will be the payout policy? Will dividends be paid or will they be re-invested as capital gains?

    I think all these facts have to be explained to the general public so that they know exactly what they are getting themselves into, that this aint a quick rich scheme or a “mpate sheleng” as some people peceive it to be.

    To the general public, my is advice that this is a good long term investment with great benefits in the future BUT DONT EXPECT QUICK RETURNS but it will require abit of patience”.

    well said guru

    gys this is nt RSA, however, pls answer all the above questions. How long is the payout, that is all we are interested in.

  13. i think this is a great idea, loccal co selling shares!!! batho ba joeng mkm hardluck. im looking for monies to buy me some shares at least this are shares for property not airtime ea mkm. haeba nthoena e chenchile sebopeo empa e ntse e le …….. kea pele. ke tla setolla pele fela hana tjena nna ke bona mahe fela ene ha ke sephoqo kea tseba. nkalimeng

  14. these is just one of those scams to pick some money out of our pockets.. even a blind man can see these isn’t legit. MKM saga all over again.

  15. @Kokota, Lesotho’s engineers are very corrupt so its not adviseable to seek help from the most corrupt monsters. Most of new government building do have roof leakages, but Lesotho engineers have approved such buildings. What about our national tarred roads which are in very poor conditions? Lesotho’s engineers have also approved that roads are of required quality. So it will be our own choice whether we can buy shares from moruo or not.

  16. Moruo company, your share price is very expensive indeed! M600 per share is really unaffordable to the poorest nation like basotho. Remember Lesotho is even poorer than Swaziland, coz Swaziland is far developed than Lesotho. Lesotho is the most poorest country in SADC. So where will we get that money because you need to buy more shares for better long-term investment? Just few people in Lesotho can afford to buy shares from Moruo. Some of us are willing to have that long-term investment but unfortunately we can’t afford that share price at all. Only the few Lesotho riches can.

    @AI, don’t compare Lesotho with South Africa. Lesotho is not RSA and it will never be South Africa. Etsoe li-share tsa bo TelkomSA eo ea hau, li etsoa subsidise ke SA govt for poor people to afford to buy those shares from Telkom. Telkom is a well established company and it won’t sell shares for R50 le khale. Kea tseba ba ne ba phatlalatse Lesedi fm ka Telkom shares tseo SA govt e neng e negotiatile le Telkom for their poor community. Li-share tsa company ena li ntse li matha hona ho bo R600, R800 & above. So don’t lie to us, we are not that stupid le haeba u sebetsa RSA moo.

  17. Ao! che! ea tla ea le etsetsa sehloho MKM ka investment e sa tlalang, joale le ntse le nahana hore company e ‘ngoe le e ‘ngoe e ka ts’oana le MKM. Che. Investment ea Moruo e na le kelello kaha batho ba entseng Finance likolong baa tseba ha ho buuoa ka lishares hore na ho buuoa ka eng, e sebetsang joang, le hore na u ka fumana dividends kamora nako e kae ea investment. Ho reka lishares ho fupane hole haholo le ntho’e makatsang e neng e ntse e etsoa ke ThebeeaKhale MKM. MKM e ne e sena matsete a nako e telele, ho teng MKM e ne e etsa push-push ka percentage e makatsang ea tsoala, haholo mehleng ena. Hana e ne etsoa kae tsoala e ngata hakalo? E ne etsoa licheleteng tsona tseo tsa lona. Kahoo ho ne ho ntse ho tlameha hore le jeoe hobane le ne le kene push-push e neng e tla felloa ke chelete neng kapa neng.

    Hana ke hokae moo u ka investang M300 ebe kamora 10 years hothoe u fumana M1 million? Hana M300 * 120 months ke bokae? Akere 300*120=36 000. Joale basotho, ebe le ne le nahana hore MKM M964 000 ea tsoala ea motho ka mong oa letlole la 1 million e e nka kae eona na bathong? Akere e nyafa licheleteng tsona tseo tsa lona? Kahoo ho na le ba tlaba malimabe ba jeoe lichelete ke MKM. Hono ho bolele hore company etla qetella ele bankrupt, e keke ea phela nako e telele kaha ha e khone ho managa lichelete tsa eona hantle. Kea ipotsa hore MKM ena e ne e na le li-Accountants le li-Auditors na, kapa e ne e itsamaisetsoa sesotho fela tjena ke Thebe-ea-Khale na? MKM e ne e ntse e tlameha ho chona, ka litsoala tse kaale-kale? E ne e khona joang eona bathong?

    But ena ea moruo is totally different from that of MKM nonsense. Hona ke lishares eseng mpate sheleng le push-push ea MKM. Khale li-push-push li ja batho Lesotho mona pele ho MKM. Moruo eona kea e rata investment ea teng empa ka bomalimabe hakena ho khona li-share tsa eona tse turu haholo. Ke ts’epa hore Moruo e tla nne e rekise lishares le ka moso, mohlomong re tlabe re iphumane re khone ho reka ruri. Ba khonang rea ba lebohela kannete, hona ke letlotlo la bohlokoa la bophelo bohle!!!

  18. @Sefelebathe, u utloahala u le engineer e bitter hona hoo. Hore ebe u engineer lefats’eng, ha ho bolele hore u know all, ke ka hona re boanng meaho ea Lesotho mona e nela hakana-kana fela batho ba ipitsang engineers ba ntse ba le teng. Ke hobaneng? Ke hobane engineers hase master of all. ‘Na kea makala hore ebe Lesotho le phoqehile hakana SADC mona le nyonts’a le sena tsoelopele ea letho, ebe batho ba kang bo Sefelebathe ba bitter ha Lesotho le itikile ka ho aha only one shopping mall, ha naha e nyane haholo ho Lesotho eleng Swaziland e na le lishopping malls tse fetang 10. Swaziland shopping mall e lekanang le Pioneer e ahiloe mahaeng outside Mbabane & Manzini joalokaha eba Lesotho le ne le kaba le malls bo Morija, Roma, kapa Semonkong. Feela motho e mong eena o bitter ha Moruo e etselitse Lesotho ntho’e kale-kale ea ho aha just a single shopping mall in Maseru e hlabisang lihlong hakaale? Basotho ba jealous, emisang hleng hoba mona o khinne tsoelopele ea Lesotho haholo eseng hanyane.

    Hoea ka uena Sefelebathe, u ne u batla ha Pioneer e ahiloe kae hee? Haeba u moikhoni ea khonang hoea weekend shopping in Bloemfontein, ikele, haho motho ea ka u thibelang. Joale seka rata eka Lesotho lekeke la aheloa lintho tse ntle hobane u boulela Bloem. Rona ba bang hare batle ho besale re tenne ma-South Africa ka ho ts’ela hangata malibohong a naha ea habo bona, hobane baa nyonya, haba batle traffic ea basotho to RSA. Ke ka hona ba le treatang hampe hakana haholo lona ba nang le likoloi, u ea tseba hore na le ema nako e kae le fotse, line e fihla ha-Hoohlo koana. Joale tlohella Moruo e re ahele another mall, maburu a tsebe hore tlisetsa lishopo tse ling tsa bona hape Lesotho mona. Rona re khotsofetse ke Pioneer mall, ‘me haeba uena u bitter ke ona, ke tabeng ea hau. Fela ba kang uena ba sentse tsoelopele ea naha ea Lesotho haholo hona hoo ka baka la jealous!!!!!

  19. ‘Mopane ska re etsa bana please. Where do you get info ea hore share price ea TelkomSA e ntse matha ho bo ‘R600, R800 or above’? In the past year TelkomSA has recorded the peak share price of R44.80. The following highs should interest people who are thinking that these Pioneer shares are a good investment: MTN Group R134.33, Vodacom R64.50, AngloGold R346.79, AngloPlat R830.99, Tiger Brands R188.96. Now imagine this: In real estate/property the highest share price in the past year traded at R55.00!

  20. I do not know how these shares were priced. It is generally not easy to price Initial Public Offerings (IPOs) but evidence on the ground, or rather in the literature, is they are usually underpriced and prices normalise (reflect the fair value of the investment) once they are floated in an open exchange. I expect the opposite with these Pioneer shares, that upon floating they going to trade for less than M600 per share which would mean capital losses really.

    Questions raised by GURU above are very pertinent and require full disclosure before we can conclude that this is a good investment.

    With competition coming in the form of Maseru Mall (which is bigger and more elegant) and Thetsane Mall (if the what I saw on one of the billboards is true) how will the price of a square metre be affected, which is the main source of income stream from this investment?

  21. This is insane, how can a single share cost R600.00? so in order for me to benefit, i’d need say 10 shares which will cost me 6000.00? there is no value in this shares and i would not encourage the public to buy this shares PERIOD!!

  22. @Nakeli, I think you misunderstood me. Haeba u balile litaba tsaka hantle, ehlile ke itse Pioneer share price is too expensive. If a single share costs about M600, how many shares would you expect people to buy from you company in a poor country like Lesotho? Just few riches would afford Pioneer shares.

    Taba eaka kea hore hose bapisoe Lesotho le South Africa. Ke linaha tse peli tse sa lekaneng hohang in terms of economy and other infrastructural developments. Rea tseba bohle hore South Africa e ahiloe economy ke maburu, ‘me e tla lula ele betere ho feta linaha tsohle tsa Africa, so don’t compare Lesotho with that country hle basotho, kaha ho ts’oana leha leka bapisa khomo le katse.

    Litaba tsa TelkomSA eo ea lishares ke ne ke e utloe Lesedifm koana, ke haeba nka tsebella litaba tsa naha eo kae eo ke senang interest ea eona? Hona haeba licheap hakaalo lishares tsa TelkomSA, keng ha Telkom Lesotho moo e sa rekisetse basotho lishares ka bocheap boo e ntse ele ntho’e ele ‘ngoe le eo ea RSA? Ka nqe ‘ngoe ha ho makatse hore ebe Pioneer e turu hakalo ka lishares, ehlile basotho ba joalo kamehla haba le khoebong, ba turu bo sa tlalang kaha ba batla ho ruoa ka letsatsi. Joale Pioneer mngt hase mekhelo!!!!!

  23. @’Mopane
    I have nothing against you and listening to Lesedi FM. My advice to you is read a little. TelkiomSA & Telkom Lesotho are one thing? Fist question would be; what is Telkom Lesotho. If what you had in mind is ETL, go and ask about its shareholding and you won’t find TelkomSA among the shareholders.

  24. @’Mopane

    The shares data can be found from the JSE website. I am sorry to say the information you heard from Lesedi FM is very misleading. On Telecom Lesotho being part of TelkomSA, you have got your facts confused. Like Nakedi said, it’s better you read than rely on hearsay evidence.

  25. There is another mall across the road at Ha Thetsane coming up if it is it not up already. People will be flocking to that mall in droves. Something is not right here. Raising capital to build phase 2 when a new mall is in town and not very from Poineer is fishy to me. These guys want to pay off their debts with public money and leave the public as shareholders of a company that does not have a good outlook due to the new mall’s competition.

  26. Thanks for creating quality information and facts, this Post carries good helpful information for just anyone, that is certainly hard
    to find these days !!

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