Department of Public Enterprises DATE - April 20, 2023 Page 1

TELKOM IPO

Presenter:Dr. M.Eugene MokeyaneTo : Portfolio CommitteeDate : 30 October 2002

Department of Public Enterprises DATE - April 20, 2023 Page 2

OVERVIEW

Purpose: To give update since last presentation with focus upon the Public Education Campaign

• Government objectives• Outreach programme• Budget• Status report• Plan for Q1 2003 listing• Conclusion

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GOVERNMENT OBJECTIVES

• Commercial objectives– Optimal proceeds– Government as credible vendor in capital

markets– RSA as attractive investment destination

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GOVERNMENT OBJECTIVES

Social objectives– Maximising participation by HDI in the

Offering.– Raising the general public’s awareness and

interest in capital markets.– Providing an opportunity for individuals with

limited financial resources to participate in the Offer.

– Ensuring skills transfers to local institutions and HDIs.

Department of Public Enterprises DATE - April 20, 2023 Page 5

Telkom IPO Total Transactionransaction

Budget( 2002/03)

– Actual spending for 2001/02 : R51.5 m

– Rollover request for 2002/03: R95.4 m– Budget augmented for 2002/03: R102.2 m– Total : R207.6 m for the current year

Department of Public Enterprises DATE - April 20, 2023 Page 6

Telkom IPO transaction Budget( 2002/03)

Service Provider

JGCs [Joint Global Coordinators]

Lawyers

Public Relations

Printers

Transfer secretary

Institutional roadshow

JSE & NYSE listing fees

Media & International relations

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Telkom IPO transaction Budget( 2002/03)

Service Provider

Advertising campaign

Logistics

Call center

Mail costs

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Outreach programme

Purpose– To educate general public about saving and

share investments in general

Strategy– to identify 12 to 38 venues per Province– Schedule presentations during weekends

and evenings on weekdays– Mobilisation of communities using local

structures

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Outreach programme

Strategy– Interactive presentations– Presentations in local languages– READ and Project Literacy making

presentations– JGCs to respond to technical financial

questions

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Status report

PUBLIC EDUCATION

• Planning in January 2001• Waves of Opinion Surveys• Education campaign launched in first week of

October 2002• Educational roadshow inaugurated in Sebokeng• Roadshows ongoing• Townships and rural areas targeted• Television and radio ads flighted

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Outreach programme

Gauteng schedule to date

– Outreach started in Sebokeng, followed by Sharpeville, Kagiso.

– Average turnout ,enthusiasm in audience

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Outreach programme

– Outreach programme to run until mid-December

– Will reach all Provinces

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Status Report

• Deutsche Bank and JP Morgan are the JGCs• JGCs lead a consortia of other institutions• Four working groups formed

– Legal and documentation– Retail and marketing– Institutional Offer Structuring– Valuation

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Status Report

• Telecommunications legislation enactment and drafting of regulations brought in the clarity needed

– Carrier pre-select– COACAM– Facilities sharing– Interconnection guidelines

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Status report

Telkom Employee Share Scheme

• 2% Share allocation to employees(1997)

• Trust registered to administer share sale

• Approximately 58 000 employees stand to gain

• Past employees as of 31 October 1999 eligible

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Status report

CONFIDENTIAL FILING: SEC

• Confidential pre-filing with Securities and Exchange Commission(SEC) begun

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Status Report

REGISTRATION SEC (USA)/ JSE

• Presentation of Business plan by Telkom management

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Plan for February 2003 listing

SYNDICATE FORMATION

• Selection of the syndicate• Syndicate analysts presentation• Filing of prospectus with NYSE and JSE

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Conclusion

Key success factors

for the listing of Telkom

• Approval of Telkom Business plan• Appointment of syndicate• Prospectus filing with NYSE and JSE