Zambia National Commercial Bank Plc has today officially listed over 25 per cent of its shares on the Lusaka Stock Exchange (LuSE) making the end to the privatization process of the country’s biggest commercial bank.
Speaking during the official listing ceremony at LuSE Finance and Economic Planning Minister Situmbeko Musokotwane noted that Initial Public Offer (IPO) and the listing of Zanaco shares has reduced government’s shareholding in the bank.
Dr. Musokotwane added that the reduction of government shares from 51.8 per cent to 25 per cent was done in order to empower Zambian citizens by giving them an opportunity to own shares in the bank.
He said the ZANACO IPO is the largest transaction under the Zambia Privatisation Trust Fund (ZPTF) and the first ever IPO that combined the sale of existing shares and the offer for subscription of new shares which will further raise the bank’s capital.
Dr. Musokotwane said government is pleased with the overwhelming response from both institutional and private investors despite the prevailing global financial crisis which has been described as the worst in over eight decades.
He said the listing of the bank on the country’s stock exchange market is also a testimony of the sound economic policies that government has instituted over the recent years to ensure economic growth and citizen empowerment.
Dr. Musokotwane said it is government’s vision to ensure that citizens participate directly in the growth of the economy adding that government will remain committed to providing an enabling environment for growth.
He further observed that the share listing is also a significant milestone to achieving good corporate governance and sustainable growth.
Dr. Musokotwane said the increased capital for ZANACO through buying of shares by the public in the bank has also proved that the bank has remained sustainable contrary to fears by some stakeholders that the bank would not achieve growth after selling 49 percent of its shares to Dutch owned Rabo Bank.
He said government is happy that after privatization the bank was able to open two more branches namely Senanga and Chirundu and further maintained its workforce without retrenching any.
Dr. Situmbeko has since commended ZANACO and Rabobank management for supporting their employees and other members of the public to own shares in the largest commercial bank in the country.
And ZANACO Managing Director Mark Wiessing said the listing of the bank’s shares has marked the final stage of the privatization process of ZANACO which the Zambian government embarked on nine years ago.
Mr. Wiessing noted that the bank is now owned to the extent of 54.01 percent by Zambian nationals, institutions and a significant number Zambian employee’s in the bank.
He said the privatization can be considered as a benchmark for successful privatization and empowerment of Zambian citizens in line with government’s policies of citizen economic empowerment.
Mr. Wiessing said the bank will continue to strive to exceed stakeholder expectation by  designing, selling and competitively priced  financial solutions for both rural and urban Zambians.
Meanwhile Zambia Privatization Trust Fund (ZPTF) Trustee Charles Maate said the ZANACO share offer was the largest Initial Public Offer (IPO) the fund has ever transacted which was worth over 120 billion kwacha.
He disclosed that the offer had attracted over 20 billion kwacha worth of shares despite the prevailing global financial crisis.
Government last year sold 49 percent shares to Dutch owned Rabobank as part of the privatization process of the bank which has a total of 55 branches across the country.
The listing of 25 percent out of 51 percent of government’s shares on the Lusaka Stock Exchange (LuSE) marks the end of the privatization process of the countries largest commercial bank which also widely services the rural areas.
ZANIS/CM/AM/ENDS
Good move. Let us empower ourselves as Zambians.
Zambians should take this chance and invest in Zanaco.
no.3 welcome move but we need mechanisms and policy measures to ensure local ownership to curb capital flight. they shud offload more shares for locals.
What took them so long?
How my Zedians in the diaspora managed to buy shares in Zanaco?
That is a good move as I hope that the Zambians with money will be able to buy the shares.
# I doubt if any one invested only Zambians at home can invest. Those abroad are not Zambians they have changed their citizenship.
#7. VILLAGE CONCEPT, I understand. Let us utilise this opportunity to become owners of businesses.
#1 yashani kanshi
#1&8 Are you a commentator by profession
#9 and 10. Gdef, hehehehe. I am not yet but I think I shall become one. What do you think?
LT, give us worthwhile news! It seems you are running out of new stories to report on today. Perhaps you can report on the terrorist attacks in Mumbai if local news is too mundane!
#7 – I’m one of those Zambians in the diaspora who bought shares in Zanaco and CEC. I missed Celtel at the IPO but next month i will buy a substantial amount.
Aha #7 why are you worried about people outside?
#12 Why not go to sleep? RB in Nigeria is not news to you is it?
13# Joy Rider, it good to hear that you participated in these offers here at home. Us we have our own Kantemba which we hope to build up so that we can became like our mentor HH. By 2011 when we shall stand as MPs we can also declare millions of Assets on our declaration forms.
its a great move for zanaco en all zambians!i wish zambia airways will do the same!
Wooow! So Zambia is coming up now right?
WOW, ZANACO has just listed and already its stock is up 10%.
I like the fact that our stock exchange is growing. We now await for National mealing, Acess Bank and Zambian Airways to list because they are all showing interest of listing on the stock exchange.
Again, no substance in the article or from the bloggers. Nobody is asking why 49% of Zanaco was sold to Rabobank for $8Mn, even though the bank was profit making, and then 18 months later 26% is sold to Zambians (by GRZ) for a total value of $40Mn. What changed so much or are we empowering foreigners. Also on Tuesday ZNFU bought 5% from Rabobank at $800K…Zambians wake up!!!!
BUT WHY ARE’NT LOCAL INVESTORS BEING PRAISED?
#20 Awe naiwe lekatulale alakaili.
Stop kicking yourself. You will huff and puff nothing unfortunately will change in Zambia let alone Africa. As long as promises come only during election time, nothing will change. As long as people allow themselves to be bought cheaply when it is election time, sorry batata.
If you can not beat them join them. This is reason why in Africa politicians are recycled. Kick MMD out and you will see the same politicians joining the ruling party.
Just enjoy the banter on here batata. It`s good for your health.
# vi uze the same people are the ones celebrating ati they are progressed and laugh at people in diaspora ati we are run by muzungus. Colonialism never ended I tell you
It is a good start for all zambians who are investing in a big, strong bank like zanaco. However, most farmers who could have liked to buy the IPO’s were left out of the net due to the fact that they were engaged with Govt over FSP, which in turn needed alot of money to stand a chance of aquiring adquate ferts. Just to do a 20 hectare land one farmer needed atleast 100 pockets of ferts. We lost out on zanaco and hope that we shall be ready next time to invest in shares.
LUSAKA TIMES!!
When Fr. Bwalya was arrested with instructions fro Nyama Soya for speaking the truth for the voiceless, it was a headline on LUSAKA TIMES. Why have you kept silent after all the charges against him have been dropped?
LUSAKA TIMES
Fr. Bwalya was called all sorts of names and received abuse by Lusaka Times Bloggers, now you are silent after all the charges against him have been dropped by the state. Bring the Headline of his charges dropped and let those who used abusive language against be ashamed!!
Tiday is boring because there are no nice stories. pliz ba LT bring stiries about poverty or politics so that we annoy some people, its friday and i will be at hollywood city to pick some Zambian sex workers and off course dopping.
oh londoner come back to zambia and see the situation for yourself!!!
Am told MTN willbe offering shares to the public
It is good to be a share holder in this institutions offering shares. But caution should always be exercised remember shares may rise and fall. Am a shareholder in celtel, back then i thought i was making a good decision but now i don’t think so. Imagine the IPO price for celtel was K650 per share now the same is now trading at K400 and so far i have not even transacted what i loss only wish i was a bit patient. With this situation i doubt if MTN will do better.
The share prices have nothing to do with the Zambian companies’ fundamentals – last week Zain announced 25% growth in their 3rd quarter earnings but the stock still dropped 10% on the same day. Everything is down since Mwanawasa got sick by about 30%. Just watch Zanaco follow suit!
The portion of ZANACO that’s being floated as a result of the IPO represents 25% of the total equity. The market capitalisation of the IPO (for 25%) is USD40 million. The government sold a 49% stake to Rabobank for only USD8 million just two years ago! Given that Rabobank has not done anything to substantially increase the value of the bank, I think the Zambian people were ripped off and we are owed an explanation.
#12 This is not worthwhile news? There’s your answer as to why we still lag behind in almost all forms of development.
Bloody Zanaco has just listed its shares? haha..raising capital through highly inflated loans all these years isnt paying off huh? Good move any way, however, I’ld rather trade the mongolian stock exchange..Do they even have one?
No. 20 I’m shocked to hear that Rabo acquired ZANACO for US$8M. This was day light Robery! or there are people benefited as usual. why would one call zanaco big, strong when it can be acquired for that small amount of money. who ever made the valuation of the bank should arrested as there was no consideration of the future earning capability of the bank!!
Good move to empower Zambians but please do not retrench them in the near future. Just maintain them and open more branches to create more jobs.
The Zanaco IPO was a rip off. Some members of the public have not received letters of share offers up to now despite the fact that the shares are already trading at Lusaka Stock Exchange below the offer price.
We received letters bro, Check may be yuo were “ngongad” and buy more if you can!
Ba ZNCB when are you going to send our dividends in our personal accounts? 2008 – 2016 nipatali mwe. Stories stories.The branches have no answer for the same. Avail them with data.
We cant be calling you now and then as if its an individual person owing.
When we call, you put us on hold kwati ni ma services yaba cite echi were you hold for an hour plus. Atleast them its free but in your case its an expense which by the end of the day it will be equivalent to the dividend itself. Am too anxious for the feedback.