Government has appointed Imare Corporate Finance (ICF) and Stock Broker Zambia (SBZ) to manage the disposal of the Zambia Privatisation Trust Fund’s 25.8 percent of the ordinary share capital of ZANACO.
This would be via an Initial Public Offer (IPO) followed by the listing of ZANACO shares on the Lusaka Stock Exchange.
LUSE Chairperson Friday Ndhlovu who disclosed the listing of shares by ZANACO on LUSE in Lusaka today said the move was remarkable as it would enable a lot of Zambians to have an opportunity to own part of the Bank shares and benefit from profits through dividends.
Mr. Ndhlovu further announced that LUSE will at the end of this month host a Southern African Development Community (SADC) stock exchange meeting in Livingstone.
He said the agenda of the meeting will be to foster regional integration of markets and harmonisation of trading rules among other things.
Meanwhile, Lusaka Stock Exchange (LUSE) has approved a K1 billion and K40 million Celtel application to offer 20 percent of its shares on the Lusaka Stock Exchange.
LUSE Chairperson Friday Ndhlovu announced the development at a press briefing in Lusaka today.
Mr. Ndhlovu said the offer period opened on April 30th and that it will close on May 20, 2008.
He has since urged Zambians to take advantage of Celtel’s 20 percent listings and buy shares as a means of economic empowerment.
Mr. Ndhlovu further disclosed that the Lusaka Stock Exchange (LUSE) is to invest US$ 1million towards the procurement of an Automated System which will be operational before the end of this year.
He explained that the recent listing of the Copperbelt Energy Company (CEC) as well as the increase in trades and increased numbers of listed securities and an increase in awareness and interest by local investor’s has prompted LUSE to switch to an automated system.
Mr. Ndhlovu said investment in an automated system will increase speed and subsequently cope with the anticipated increase in investors trading arising out of the new listings of Celtel and the Zambia National Commercial Bank (ZANACO.
He explained that the Lusaka Stock Exchange had in the past been operating on a manual basis adding that orders were matched as they were faxed or delivered to the exchange by brokers.
Yaba!
That’s very good news but how many Zambians will manage?
Great news indeed! That is one very good way of empowering local investors. #2 you do not need a lot of money to buy shares in a company. For instance, Celtel are accepting a minimum application for 700 shares at K640 which translates to K448,000.
#3, which broker do you recommend using?
Gibby might have a point here. There is talk about IPO,Shares bla blabla but noone has taken the initiative to educate the masses on how to go about buying these shares, which broker to use and what measures to be taken if you wanna sell your shares.
It is no good telling pipo about something when information is sarce. I dont see too many pipo taking advantage unless massive education campaign is mounted and i mean real basics
Dear All..Those who want to buy shares can walk into any bank/ financial institution accepting applications. As for brokers, Pangea is the lead broker. Other brokers you can contact include stockbroker Zambia and intermarket.
Buying shares is just that simple as you buy tomatoes at the market. Walk into any bank accepting applications fill in the form pay money and that’s it! Of course you will require to show your chitupa!!!
i forgot to add cavmont bank as one of the many brokers in Zambia.
Big Ben thanx for your insight but i think what #5 TBOZ is saying is without education about what shares are and the rest then participation will be minimal. You talk about buying tomatoes ,we all know the use of tomatoes and besides it is an everyday requisite but shares are not. What are shares and why should i buy them? That is the kind of basic education that needs to be spread.Otherwise the whole process will be fruitless. we are starting from the top instead of the bottom.Tomatoes you dont need a broker, but for shares you do so just that difference can make or break an idea
Hey guys I need some help here. I have a broker called Pangea at farmers house and I sent them cash to buy me shares in Celtel. Now they tell me I have to fly into Zambia and sign the form and they are not allowed to do it for me. Has anybody abroad successfuly managed to push in an application for celtel and who did you use? Share the info guys, I need to get in on this act.
Mem
Thanks Brrr…i was trying to make it that very simple to remove the little fear that people have by giving a simple example of buying tomatoes.Basically, on application (buying of shares) there is no need for a broker, however, after the share application has been accepted and you have been allocated your share in the central depository at LUSE then the issue of a broker comes in to transfer the shares from the central depository to your account with the broker. As a good yes tomatoes are different from shares in that tomatoes are a consumtion good in the short run where as shares are a long term investment. They can be acquired for capital gain or income in form of dividends.
cont…My friends Chibamba and Brian Kalito Tembo have written extensively on this subject. Additional materials are available from the brokers themselves, bankers, economists and Accountants. I’m writing something on this topic and intend to launch it when next i visit Zambia sometime in August/September.
#9- I gree with you. It looks a bit difficult for those of us outside Zed. Howevere, my advise would be for you to buy them through a friend or relative (on your behalf)and transfer them to you when you visit Zambia. It would also be advisable to consult a legal person on this mode of share purchase.
how many understand what it means and the benefits?
LUSE is making positive strides in creating a platform for Zambians be economically empowered.I would urge LUSE to speed up the acquisition of an automated system which would drastically cut the inefficient and bureaucratic system currently used.
What needs to done is that these established brokerage firms need to linked to LUSE online.An individual can then open an account with a brokerage firm and then have access to buy or sell stock on LUSE.
What they do in the USA is that brokerage firms such as E TRADE or SCOTTRADE invite potential investors to open an account with them with a minimum amount of $500.00 and they only charge anywhere from $7.00 to $20.00 per trade or transaction cont
#13-I would not estimate how many people understand what it means and the benefits. However, it is said knowledge is power. There are many benefits that one can attribute to. Take it this way i buy the shares at K100 today and six months down the line the same share is K1000! It means i have gain K900 in six months. Multiply K900 by the number of shares you hold say 10,000 you have gained K9m in capital. At the end of the year the company may decide to pay you a dividend say K20 per share will give you K200,000!. CAUTION-THE OPPOSITE COULD BE TRUE! You can loose your money if the share price goes below K100!!!
Other benefits include use of the same shares as security against a loan.
continued from #14
A person can link their checking account to their brokerage account in order to facilitate any monetary transfers.Basically,with such an account an individual can access the stock market be it NSE,NASDAQ or any other market.
This is the direction LUSE must take if they are to tap into the vast investment potential that`s available.They also need to continue the awareness drive so that fellow Zambians can maximise their investment potential.
In addition to #16 daily updates of share price and index is very important. Look at how long they take to update their website!!
Very few Zambians really understand and appreciate the way the stock market operates, so I expect a few informed Zambians to take advantage of this opportunity. Lets us continue to educate one another about investments in stock markets. A lot of Thamangas have lots of cash in their homes under the pillows but only know thamanga business and with their business accumen, I believe they can really make it in the stock market. These chaps can smell changes in exchange rates before Bank of Zambia knows! They will definately achieve a lot when they start foretelling which stocks are gaining!
Please, anybody on this blog who atually owns shares on LuSE. Sounds like we have a buch of arm chair advisers and power point experts on this blog. I want to get into Cettel without having to go home. Has anybosy been successfull. If so please share the info.
Today, Bigben you’re at your best. Please keep the spirit.
#19-See my # 12 posting in addition have you read the prospectus?
#20-I’m always at my best baba!!! It’s only that times i make funny of situations (taking a look at issues from another angle) and sometimes i think big as a result people fail to see and accept the picture. Thanks though!!!
This is quite an interesting subject on which people with foundation knowledge and desire to share must participate. Since information on the blog site is going to be discrete, I ha
This is quite an interesting subject on which people with foundation knowledge and desire to share must participate. Since information on the blog site is going to be discrete, I have a suggestion to those that would like to commit. Using my own resources, I will establish a site with all the submissions accessible to anybody on the globe at no charge. Those interested must forward content to be published in text format to this address ([email protected]). In the event that the content is too large to be sent as an e-mail attachment, I will provide an FTP site for that purpose.
#9,19, I sympathise with you. I at one time happened to be in a similar situation and desperate, too. Until I just gave up. But, I would advise you to find some time to go there and sort things out yourself. On top of that, go with a mass of lolly for bribing your way through. Thats the practical life in Zambia. Even for straight forward things. On top of that get a holiday for at least 2months. As the systems will not be as efficient as where you live. I know where you live you can do almost anything over the 4ne including applying for a loan and even get your application results within a day. Don’t make a mistake of entrusting any of your relatives or friends. GO THERE YOURSELF.
#6,7,11,12,15,17,21 THANKS 4 trying 2 simplify things about buying shares and making reference to your friends Chibamba +. However, educating citizens on such economic issues should not be a one off, and along the line of rail. By looking at the # of contributers to this blog one would conclude that most of them afterall live abroad and therefore can afford a computer. Even those who live in Zambia are just Lussies (orlis it Lusakans) and a few CB residents. Thats how narrow information disemination is and receivership is in our country. Info is 4 the previleged few. On top of that maybe our grand pas/mas, even our fathers and mothers may not be in a position to read and understand english..
…as this is mainly the language used in newspapers where real economic issues may be discussed. Economic empowerment is not just a lip service. It is a practical issue that must cover every corner of Zambia and issues pertaining to that discussed in no uncerttain terms using all media available. On top of that, technology is cheaper nowadays as compared to 20 years ago. The GRZ should take as a responsibility to avail it to every corner of Zambia. Don’t get me wrong. I am not saying the grz must buy PCs for each and every household in ZAmbia. But, it wouldn’t be very difficult for the govt to equip all the libraries especially in the rural towns with computer and institute…
…a simple and befitting programme for educating pipo on the basics of using a computer. One does not need to spend so many years in formal school to be able to learn how to access info (and even send info) on the computer. You can equate a radio to a computers in terms of information exchange.
In all the GRZ libraries membership should be free, this includes using a computer. Unless one wants to print any type of document or use a photo copiers. Local language papers should also be used to broadcast such info-developmental.
27 i like your thinking but practice is far fetched.
“info-developmental”, should read as follows: developmental-info. Sorry.
Ba Chinondo(#19) try getting in touch with Stockbrokers Zambia.
They are on email: [email protected] Telephone numbers are: +260 211 232455 or +260 211 227303
Good luck.
Sad that this GRZ is dispossessing the vast majority of our people who have no means to buy shares at LuSe because of its poor management of Zambia. Only those in corridors of power – the MMD and the thieving civil servants are going to benefit from this decision. This decision is really another act of stealing from the public and rewarding a few well-positioned thieves.
#31 the pipo u are talking about cannot buy these shares, its u and the rest who this info is meant for.Be practical, which villager would understand this share story? or which kaponya would buy into this investment story? Its for you and other zedians who can afford. Which way would the govt help here?
Wow!!! the back ground picture of “Luseki” looks very stupendous
Thanks guys for the info #30 & #21
Guys thanx for the info … Contacted “Pangaea/EMI Securities Limited” in a flash they sent me application forms and the agreement for signing then I will fax them.And yeah, I will express my frustration/joy here for someone else to learn thro the process.