Greetings from Sandton! This place actually allows me to write frequently as I have not many disturbances and weekends commitments, so hopefully I will be putting out a few articles over the next 31 nights.
This marks the first article in the series of articles that I will be writing relating to investing in shares. I have been receiving a few requests on whether or not the standard bank shares are worth investing in because of the recent announcement of the planned listing on the Namibian stock exchange.
The last public offer was a year or two ago when the Letshego Bank listed, giving the public an opportunity to buy shares. A lot of public awareness was created around that listing which led to some people participating and others missing out. The last time I checked, some people invested in the shares without really understanding what they were signing up for.
To help you make a better choice, let us cover the basics with regards to shares investment. I will publish the articles under the following titles:
- What are shares and what is the difference between investing in shares and other investments products.
- What are some of the key features that have been published in the prospectus?
- Do I actually think it is worth it to invest in the shares ?
- Lastly, if I do not buy the shares, what other investments opportunity do I have?
If you have not bought shares before, a public offer ( like the one currently open to the public by Standard bank) is the easier way to buy shares. This process is often accompanied by public lecture on what the process to follow is, you do not have to pay any fees and there is often sufficient time between the opening and closing date to allow you to decide.
One of the primary reason a company will offer shares to the public is to raise funds. The company hopes that the shares that they offer to the public will be fully taken up ( i,e me and you actually buy all the shares) and that they get enough money to spend on the primary reason they raised the funds.
In Standard’s bank case, amongst other reasons, they what to have enough capital to be able to carry out the growth that they planned and to unlock values.
That being said, if you are looking to buy shares, you have from the 7th October until the 1st of November (12pm) to make up your mind. All the information that you will need is available on their website but I will also be highlighting them in these articles.
I hope by mid next week, you will be in position to decide.