Shares in Savanna Beef Processors rose by 6.84% in September as local livestock producers increased their investments in the company ahead of the opening of its new beef export facility.

According to the Namibian Securities Exchange (NSX) monthly report for September, compiled by High Economic Intelligence (HEI), over-the-counter (OTC) market activity expanded significantly, with 923 014 shares changing hands in 17 deals worth about N$1.23 million.

Savanna Beef Processors was responsible for most of the activity, with 898 300 shares traded in 14 deals at a total value of about N$1.12 million.

The company’s share price rose by 6.84% to N$1.25, placing it among the top monthly gainers on the exchange.

The report says the increase in trading was driven by local livestock producers who were “finalising equity positions ahead of operational readiness for the new beef export facility”.

In simple terms, local cattle farmers were buying or increasing their ownership in Savanna Beef ahead of the facility becoming operational.

Savanna Beef is scaling up after receiving European Union (EU) export accreditation on 7 April and Southern African Development Community (SADC) export accreditation on 11 June.

In January it issued 40 million ordinary shares following a subscription agreement with BPF Windsor Holdings Limited.

The shares were issued at a nominal value of N$0.01 each, together with a premium of N$0.99 per share, increasing the company’s issued share capital to 290.004 million shares from 250.004 million shares.

The OTC market is a section of the stock exchange where shares that are not traded on the NSX’s main board can be bought and sold.

Source: https://www.namibian.com.na/farmers-push-savanna-beef-shares-up-6-8/