RNB Properties eyes M68 million through listing

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Bereng Mpaki

RNB Properties Limited, the first company to list on the Maseru Securities Market (MSM), is aiming to raise M68 million to expand its operations.

Established in 2010, the company has significant investments in undeveloped residential and commercial land in Lesotho.

It has four integrated real estate core businesses, namely property management and sales; property development; maintenance and renovations as well as property consulting.

Following it listing on the MSM earlier this month, the company plans to sell 6, 6 million shares to the public through the securities market to raise the M68 million capital it requires to grow its business. This amounts to 33 percent of the company’s total 20 million shares.

In an interview this week, the chief executive officer of RNB Properties, Bataung Mokotjo, said the company’s expansion plans had been hampered by lack of funds.

She said they had opted to raise money via listing after struggling to raise the necessary funds through traditional financial instruments.

“While sourcing funds, we came to a point where we had exhausted all the possibilities that were available,” Ms Mokotjo said.

“We then realised that listing on the MSM was the only option left for us. The company is planning to sell 6, 6 million ordinary shares to the public through the MSM to raise M68 million as capital.

“We need the capital to grow our core business units which include property management, brokerage, property refurbishment and maintenance and property development. We are in the process of acquiring land to build a land bank as part of our property development project.

“There are various prospects in the property market. There are gaps that need to be filled and many areas that are underdeveloped. So, to us, this translates into many different opportunities we can tap into to expand our business,” Ms Mokotjo said.

She said they had already sold some shares through the MSM. However, the bulk of the shares were still available, she added.

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