Celtel Zambia Plc, raised 665.6 Billion Kwacha ($205 million) on Lusaka Stock Exchange (LuSE) in the Zambia’s biggest initial public offering )IPO). The company shares gained 13 percent in its Lusaka trading debut.
Celtel Zambia, which sold 1.04 billion shares, or 20 percent of its stock, for 640 kwacha each, climbed 85 kwacha to close at 725 kwacha, according to Lusaka Stock Exchange data.
Celtel Zambia, the southern African nation’s biggest mobile- phone company and a unit of Kuwait-based Zain, attracted applications for more than twice the number of shares offered.
“I expected the share price to rise because of the high demand in the sale”, Moses Musonda, a 27 year-old vegetable seller in Lusaka who bought 10 shares in the IPO, said in an interview in the capital today. He said he plans to increase his shareholding further.
The company has 78 percent of the country’s mobile-phone market and plans to increase its subscribers to 2.7 million this year from 1.9 million customers in 2007, according to its pre- listing statement.
Celtel Zambia Managing Director David Venn said Celtel had offered 20 percent of its 5.2 billion shares in issue to the public. The IPO was 150 percent oversubscribed by foreign institutional investors and the Zambian public.
Venn said that Celtel International BV would now hold 78.9 percent in Celtel Zambia, with the World Bank’s finance arm — the International Finance Corporation (IFC) — holding 1.1 percent.
Celtel is now the biggest public traded company in Zambia. It is now valued at $1.19 bn. Celtel now can easily borrow from money markets because its accounts are now open to the shareholders and the public at large; not to mention creditors. Unfortunately we cannot say the same about ZESCO, ZSIC, ZNBS and ZANACO. It is a scandal. LOL we have Kuwaitis promoting share ownership among Zambians while their own goverment is reluctant to empower them. JUst imagine if Mopani, KCM and other mining companies were privatised via the stock market with 20 to 30% shares reserved for Zambians! Imagine the buzz in the country! Just imagine!
LT this is a Reuters Story, one day LT will be sued, who don’t you attribute the source of your stories?
This is great news for zed i would say but does anyone knows any information about ZANACO IPO and other IPO’s about to be floated on the Zambian market, please advice…
Bakabawala imwe mu wamwe na network facility wenu ….
Wow, im baffled.
It just put 20% of its stock up for grabs and makes that much money.
I wonder how much it would have made had it put up 40%.
That is amazing.
It’s time other Zambian companies learn from this and stop there Stock-phobia.
I hear Zambian Airways also wants to list.
its time for us zambians to wake up and see the potential of our own country.We dont really realise what we have,but when foreign investors come in they see a land of opportunities.Put up failing companies like zesco,replace the management with stake holders,and see how efficient it will run.
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who’s the other mobile provider in Zambia apart from celtil?
#8 zambia1
There is MTN and Cell Z and govt is talking about allowing another mobile service provider.
Basically it’s an oligopoly.
When did you leave Zambia????
#8 we are told Vodacom is also playing on coming in, the only problem I foresee is that Kavindele being what he is has already poked his nose in there.
Zambia has a big chance of making it big economically inspite its relative small economy. It is just a question appropriation. We have enough local brains to make this happen. Yes we have the poor and a large section of illitrates. But it is possible with a few brilliant minds to bring about proper prosperity. I tell you, Zambia is nice. I really like Zambia. It is just a question of time! I will tell you what joy fills our hearts when you cross into Zambia at whatever port. I believe that this is the expierence and aspirations of many Zambians whether localor abroad. This is our time henceforth.
#11 I am encouraged even more now, where have you been please I need a witness (like pule would say), to help me spread the good news. We are coming, watch the space, in 2015 we shall be discussing how we have walloped the so called MDGs targets etc.
Fact: the minimum number of shares that could be bought was 700. Therefore Bo Musonda could not have bought just 10 shares (worth ZK6,400)in this IPO. The Reuters reporter got this one wrong!
On the other hand, it’s disappointing that yet again Zambians failed to snatch a respectable %age of the shares on offer. While lack of extensive publicity is being blamed for this, I also think that the culture of not investing/saving in many of our people is the real culprit! The cash economy which our country is running on is also not helping. But that’s the price of condoning corruption!
Chiluba made corruption fashionable!
Anybody who bought Celtel shares…what is the story…When are the egg hatching.
Celtel IPO was being promotes for 2 months prior to opening and was advertised every single day in all the local newspapers. The company engaged the top four banks in the country as receiving agents and two of the brokerage firms (Pangaea Renaissance managed the whole process). Roadshows and radio programs were held every week during the IPO. Celtel hired the whole ZCAS computer lab utilising 60 computers and hiring 100 temps to process the applications. Since all the local transfer agents were afraid of this function (unknown demand), Celtel invested in a software to ensure that applications were processed smoothly. The end result – over 400 Zambians involved in the IPO process.
just under 6,000 applications were processed and settled within 10 days. Past IPO had far less than this number and settlement would take 4-6 weeks. I think its unfair on GRZ or any third party to say Celtel did not put in enough of an effort. 13 is right that this was probably more a lack of cash and understanding on part of Zambians than anything else. Celtel spent more advertising the IPO than what the Lusaka Stock Exchange spent in the last 3 years COMBINED advertising the Exchange!!! That said Zambians invested over $100Mn with the banks lent over K50Bn ($13Mn) for the IPO.
The company is now listed and has been trading between K725 – K1,100 ie 15-25% gain
Good call # 16 – 17. Thanx for unbundling this whole IPO issue with facts and figures spot on. You seem like you were very much part of the action. Whatever the case, good stuff and thanx again for sharing it.
#4,Try to use understandable language,iam not looking down upon your language but look at the audience.Use Enlish our official,its not owned anyone
Sorry,I meant’use English our official language,its not owned by anyone’
13 i agree with youn and also just noticing the fact that whenit comes to It in zed we lack behind or shud i say lack incentives, why wasnt it posible for celtel to have the application forms accessed online everywhere on its websites and the websites of its sponsoring anagents and banks, i think because of this many zedians in diapora even if they wanted to buy the share where late down because it was practically impossible to fly to zed just to fill in the damn application form n all. next time we shud have such incentives of even allowing online applicatons forms available for those of us who cant fly to zed for the stupit IPO payments can be through western union or banks abroad
21 your suggestions were tried but it meant that the advisors and the issuer had to obtain US SEC approval – a thing called Reg S says that you cannot sell shares to people living in the USA. Makes it very complicated/expensive and begs the question whether its worth doing for an IPO at $190Mn. Large for Zambia but ridiculously small on a global stage. Plans were made for Zambians aboard that want to participate to utilise their family network in Zed or fly in if they have to (Kenyans did so just to front as Zambians in the IPO). For those not prepared to do so, for the reasons stated above you were not able to participate and probably wont be able to do so for a very long time in Zambia
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