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Madison Financial Services IPO fully subscribed, raises K 62 million.

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Zambia’s first Initial Public Offer in six years, the Madison Financial Services share offer was fully subscribed by mainly individuals.

The development shows the growing appetite for individual shareholders to own equity as Zambians seek different investment options.

A statement from the Lusaka Stock Exchange shows that the Madison Financial Services IPO which opened on 1st August 2014 met all the objectives with the full 20,000,000 shares offered being fully allocated.

All individual investors who applied for the shares have been allotted the full amount of shares for which they applied under the Officer for Subscription.

A total of 1,463 applications were received from individual, institutional, local and foreign investors.

African Life Financial Services took up 6,000 shares totaling K 15.5 million which represents 25 percent of the total allocation of 200,000,000 shares.

Gross proceeds from IPO amounted to K 62 million.

Participation by individual investors was 1,280 representing 86 percent participation with 3.008.154 shares allotted representing 15.0 allocation.

42 institutional investors participated representing 3 percent in participation with 14,220.000 shares applied for representing 70 percent while 14,002,048 shares were allotted representing a 70.1 percent allocation.

161 employees of Madison Financial Services participated in the IPO representing 11 percent in participation and shares applied for was 14.7 while the number of shares allotted was 2,969,800 representing a 14.9 allocation.

Madison Financial Services is expected to fully list on the Lusaka Stock Exchange on Monday August 25 2014.

“Board and management of Madison Financial Services Plc thank all investors the resounding support and a vote of confidence in Madison Financial Services Plc and look forward to an exciting growth trajectory as a fully listed company on the LuSE,” read the statement.

9 COMMENTS

    • Good thing you said this. My thought was ‘who or what is Madison Financial’? The article does not say anything about the company or who the owners are. LuSE management or whoever is in charge have to make sure this market does not lose credibility by allowing people who have been involved in questionable business activities in the past to list their companies here.

  1. This is great, commendable stuff. Thumbs up to Madison.. An inspirational lawyer/businessman Mr. Sikutwa is. Way to go

  2. Robin, You are straight on. Though you did not elaborate, some of us who know Madison from Meridian BAIO, we know its a scum to syphone more funds from the public and enrich themselves even more.
    Just you wait very soon after the PF sinks, all the shares will be sink with them, and Lawrence Sukutwa will continue swimming in the money…
    Guys Zambians have vey short memories.

    • General

      Bakalila, people are so gullible in Zambia ,it was appalling to see them sign forms to have them swindled in broad day light. when you ask they say even my neighbour ba chite is doing it. Those who bought shares in Chilanga cement are crying. My uncle was, is one of them.

    • Robin what happened to Chilanga Cement? Never mind, I said that before I thought about it. I can easily find the answer. It’s the information age after all.

  3. All investments carry a risk of some kind. It’s entirely up to individuals to assess their risk tolerance. Investments in stocks and bonds are meant to be long term and that investors should always look at diversifying their portfolios to minimize loss exposures. Do not put all your eggs in one basket. Individual should avoid dumping all their hard earned money into a single stock. Do a diligence study on the company before investing…..

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