About 100 000 individual applications were submitted for Vodacom's public share offer, YeboYethu.
The cellular giant says the offer has been so successful that it has been over-subscribed by almost three times its availability. "The YeboYethu public offer has been highly popular and that means subscription levels have exceeded the amount of shares available."
The public share offer opened on 30 July, as part of the company's R7.5 billion black economic empowerment (BEE) venture.
Vodacom's outgoing CEO, Alan Knott-Craig, says the success of the BEE transaction, which includes the YeboYethu offer, has surpassed the company's expectations. "Our goal in structuring this transaction was to promote truly broad-based empowerment, and the overwhelming public response, particularly at the minimum investment level, means we have achieved this goal."
Times three
According to the company records, around 50% of the individual applications were from women and 60% of all the applications were for the minimum amount of 100 shares (at R2 500). The company did not indicate how many applicants requested the maximum number of 1.44 million shares (at R360 million).
The processing of applications has been under way since the closure of the offer and has involved intensive activity, including checking details and collating information, says the company.
Vodacom has made provision for over-subscription, which will be applied to those applicants who do not receive the number of shares they applied for.
According to Vodacom's statement, it will refund the amount for the non-allocated shares, with interest. "The interest will be calculated from the closing date until the date of the refund," says the company.
Restrictions apply
Shareholders who have purchased through the YeboYethu offer are obliged to hold their stake for a minimum of five years. However, the shares held by YeboYethu will not be traded during that time.
After five years, sale of the shares will be permitted; however, it will be restricted to black ownership only. After 10 years, there will no longer be any restriction on the sale and purchase of the shares.
The share deal has had white-owned organisations, from small businesses to the trade union Solidarity, up in arms. The union has challenged Vodacom on the sale of shares exclusively to black people and black businesses.
Responding to Solidarity's accusations, Vodacom said the YeboYethu public shares offer is a means to achieving "acceptable BEE credentials".
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