Paratus Namibia Holdings Limited (PNH) has announced that it successfully raised over N$600-million through its recent rights Issue and investment drive, which was fully subscribed.
This significant capital infusion has effectively doubled the company’s market capital on the Namibia Stock Exchange News (NSX).
The funds will be allocated to expand Paratus Namibia’s existing offerings by enhancing its core systems and infrastructure. The investment is expected to enable the company to adapt and transform its business model to meet the evolving demands of customers and the market. Paratus operates in seven African countries, Angola, Botswana, DRC, Mozambique, Namibia, South Africa and Zambia.
Schalk Erasmus, CEO Paratus Group told Observer Money that the investment will boost the existing business revenue generation capability and thus surely increase value to both existing and new potential investors.
Observer Money (OM): PNH raised N$600m, what is the implication of this on the standing of the company on the Namibian market in terms of attractiveness?
Schalk Erasmus (SE): All proceeds of the rights issue will be invested in revenue generating assets. With this investment we are increasing our addressable market size from 90 000 connections to 2,3 million potential connections. This investment will boost the existing business revenue generation capability and thus surely increase value to both existing and new potential investors.
OM: May you elaborate on the funds being allocated to enhance its core systems and infrastructure?
SE: We will invest 2/3 of the funds in expanding our national footprint (mainly radio as well as a bit of fiber), the other 1/3 of the proceeds will be invested in a digital software stack which will enhance our offering and service levels to customers as well as improve efficiencies in our back office both in terms of process and staff requirements. In essence we are gearing our business to serve a much larger customer base by means of digitisation and expanded coverage.
OM: What are PNH’s current expansion plans and new projects?
SE: Our main focus is national network expansion to connect more Namibians across multiple last mile Technologies.
OM: Your company operates in a highly competitive market, how are you staying with the park?
SE: The capability that digitisation brings to our operation has a significant impact on how we will compete in the future. We are very focused on the value proposition to our customers and do not believe competing on price is strategically sustainable in the long run. It is a recipe that has served us well over the last 5 years and key driver for innovation and adapting to what our customers need.
OM: Anything else to add?
SE: I would like to take this opportunity to thank both existing and new shareholders of Paratus Namibia Holdings for sharing our vision and putting their trust in us. Another big thank you to our dedicated staff who are relentlessly committed to give our customers the best possible service.
