By NOMFANELO MAZIYA | 2024-03-27

Nkonyeni Pre-Cast Limited (NPC) projects revenue of over E150 million within four to five years.

these projections, however, based on a conservative approach ‘as it is best to under promise but deliver beyond imagination’.

Frans Pienaar, the company's founder and largest shareholder with a 70 per cent stake apart from the conservative predictions on revenues, he reaffirmed his commitment to retaining control of the company and passing it on to future generations.

He was adamant that he would like these to remain in his control for years to come and be passed on to his future generation.

This comes after a successful public offering (IPO) in November, where Pienaar released 30 per cent of the company's shares to the public at E1 per share.

 The IPO was followed by a E20 million bond issuance, further solidifying NPC's financial standing.

Following the listing on the Eswatini Stock Exchange, the share price increased by 20 per cent, reaching its current value of E1.20 per share.

Pienaar's commitment to long-term growth, coupled with the strong post-IPO performance, paints a positive picture for NPC.

The company appears well-positioned to continue its success and solidify its position as a leader in Eswatini's construction industry.

The businessman was asked for his perspective on the state of the company after recently issuing the E20 million bond.

During an exclusive interview, Pienaar who is the company’s board chairman, a non-executive role, was excited about the future of the company which he said was his life.

He said the bond and selling of shares was part of the company’s ambitious recapitalisation mechanism, which would ensure their planned expansion reaps rewards.

“I can’t tell you how long I will be alive.

But even after that, the legacy will have to live on. We are currently in the process of setting up a trust fund to hold my shares indefinitely for whoever follows me because I am not going to live forever. That’s a fact.”

Pienaar said the vision was for NPC to become an investment vehicle to stimulate economic growth,  foster investment and development not only in the area of Nkonyeni, where it started in 2007 which is a very poor and rural undeveloped area, but to also grow nationwide. “For it to become an investment vehicle, this whole capital raising exercise by listing equity on the Eswatini Stock Exchange and now with raising a bond in the financial markets, it will create and unlock opportunities within a year such as job creation,” he said, adding that this would ensure a better life for involved such as the employees and all investors.

Having initially bought shares within the company in 2010, which was shortly after its inception as a minority shareholder, Pienaar bought more shares as the years went by until he out rightly owned the company in 2014.

 

With the availing of 30 per cent of the company as shares on the ESE, he emphatically says it would be stupid to sell more as the stake he sold was just enough to increase working capital, but not enough to want him to leave the company.

The initial public offering made him aware that the company was on a growth trajectory following that its value increased by 20 per cent after listing and he expected the value to jump exponentially in response to the company’s productive performance. He said he did not need to sell more shares as NPC was his legacy investment, which would see his great grandchildren grateful for setting them up by not offloading his shares. Referring to a mobile telecom giant and its share price growth over the years, Pienaar said it was such stories that encouraged faith that NPC would grow exponentially such that he has quantified that at E7.85 per share, market capitalisation would be more than E1bn.

 

“I think I am not going anywhere even if we get to over E7.85 per share, because then my belief that the company will do much more will make me want more.

“If I sell it, I won’t have it anymore,” he said.

Pienaar added that first-hand knowledge on how the money from investment was being used to recapitalise the business made him aware that there would be significant dividends in the near future which would be more than what he would ever spend.

He, however, cautioned that the investments were not a get rich quick scheme as they were about patience and willingness to be part of the growth of the company.

 “It sounds very sophisticated and fancy to say I am the biggest shareholder. I am also the biggest risk taker,” said Pienaar, who added how the new partnerships and issued bond made NPC a safer and robust company with an edge to perform and deliver as per expectations.

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