THE Lusaka Stock Exchange (LuSE) will this week meet Zesco limited to engage the utility company appreciates the process of raising capital on the stock market.
LuSE wants to find out if the electricity utility has immediate capital raising projects that require cheap funding.
Speaking in an interview, LuSE general manager, Beatrice Nkanza said she was surprised to learn that Zesco cannot raise capital from the capital market because they were of the opinion that it was expensive.
She was reacting to Zesco comments last week that raising capital on LuSE was expensive as compared to banks.
â€œThe notion that LuSE fees are expensive is a bit blanket. There is cost of doing business everywhere and to isolate LuSE and say its expensive is incorrect,â€™â€™ she said.
Mrs. Nkanza said expenses incurred by companies when rising funding on the exchange were not LuSE expenses per se.
She cited the Securities and Exchange Commission (SEC) as the first entry point when a company wanted to either list or rise capital.
She added that SEC had its own cost structure and once this was done, there was also a brokerage service that was offered to the intending issuer.
The brokerage service is a package of services that ranges from accounting, lawyers and brokers.
She stated that at each stage, parties were free to negotiate before they reached the exchange for assessment of application and approval for listing.
Mrs. Nkanza however pointed out that there was need to sensitize the masses on LuSE as a cheaper source of income.
She stated that if financial institutions like the Development bank of Zambia and Barclays bank of Zambia could raise bonds on the capital market, it simply showed that the exchange was a cheaper source for developmental projects.
â€œWe would like Zesco to come on the market and be part of the change going on in the capital market. In the recent past, we have seen Chilanga cement raise K200 billion on LuSE,â€™â€™ she said.
Mrs. Nkanza pointed out that it would be a good start for Zesco to go on the capital market and raise some of the funds it required for its projects in order to meet the looming power shortage in the country.