FIRST Quantum Minerals’ Zambian Depositary Receipts (ZDRs) are expected to be listed and admitted to trading on the Lusaka Stock Exchange (LuSE) today, the mining company has said.
The company says the ZDRs will trade on the LuSE under the symbol FQMZ (ISIN ZM0000000375), according to a statement issued by the company and availed to the Mail yesterday.
“Further to prior announcements, Renaissance Capital and First Quantum Minerals (FQM) Limited are pleased to confirm that following closure of the offer period, First Quantum’s Zambian Depositary Receipts will be listed and admitted to trading on the Lusaka Stock Exchange from 09:00 on Wednesday July 20, 2011.”
“Each ZDR will represent interests in First Quantum’s underlying Common Shares (TSX: FM). An allotment announcement with full details of the listing will be published prior to listing,” the company said.
LuSE chief executive officer Beatrice Nkanza hailed First Quantum for becoming the first mining company to issue shares on the local stock exchange, adding that the listing avails Zambians the opportunity to invest directly in the company.
“The capital market is very excited about this development and establishes the LuSE as a prime listing destination for multinational mining companies operating in the region,” she said.
Commenting on the listing, Pangaea Renaissance Securities Limited chief executive officer Ceaser Siwale said, “The First Quantum listing has been very well received by Zambian investors, and we at Renaissance Capital are delighted to have worked with First Quantum to bring this landmark transaction to the Zambian market.”
Renaissance Securities are the book runners for FQM.
FQM resident director Kwalela Lamaswala said the listing is in recognition that Zambians are important stakeholders of First Quantum and creates another way for Zambians to identify with and participate in the growth of the company.
And THERE was impressive activity on the Lusaka Stock Exchange (LuSE) last week with turnover sky-rocketing to a massive K25 billion from the previous week’s K8.7 billion.
According to LuSE Weekly News for July 15, 2011, a total of 9, 558,050 were transacted in 182 trades, yielding a total turnover of K25 billion.
This is compared to 2,747,950 shares that were transacted in 64 trades yielding over K8.7 billion.
LuSE attributed the highest volume to trades in Shoprite shares amounting to 4,248,189 shares worth K17 billion.
Overall trading activity occurred in 15 listed stocks namely; BP Zambia, Cavmont Chartered Holding Zambia, Copperbelt Energy Corporation, Lafarge Cement Zambia, Farmers House, Investrust, Standard Chartered Bank Zambia, Zambeef Products and Zamefa.
Trading activity also occurred in Zambian Breweries, Zanaco Bank, Zambia Sugar, African Explosives Limited Zambia and BATA Shoe Company.
LuSE indicates that the all-share index closed at 3,931.47 points down by negative 1.45 percent from 3,989.43 points over the previous week ending July 8, 2011.
On year-to-date in Kwacha terms, the index which measures performance of stocks on the stock market rose by 18.99 percent. The stock exchange also recorded 2,450,139 rights worth K247,014 in Investrust letters of allotment.
This is a real opportunity to put more money in peoples pockets and not the 90 days hogwash that the King cobra keeps telling us as if we are kindergarten children.Wina azalila monga lyonse!!
hello bloggers. can some one educate me on this business. how much do i need to buy stock or trade ? is it available to common man? is it better to keep savings in bank or trade on the stock exchange?
Very few Zambian will benefit from this listing as the ZDR price is very high! How many Zambians can afford minimum of K50 Million!
:)>-
Get your facts right were did you get that News, i have bought some shares though i dont even have the K50m you are talking about, get real and do not mislead us @ and SPEED the ZDR’s are only K4700 each
@# 2 Speed
Investing in stocks on the Luse is easy and much more advantageous than keeping money in the bank.Actaully if you keep money in the bank and most banks issue interest lower than inflation then you endup loosing out.Invest and do not save!!!
@Zango you are very right. It would have been better if we as individuals can participate directly in the company rather than through Institutions such as pension funds and unit trusts etc. We will not get the real value from the investments and if any of our politicians are really concerned about putting more money in our pockets they should have made this an issue.
@speed you can visit the luse website or investopedia if you are really interested in investing.
@#4 and @#2 In Zambia it does not work out that way as the share prices usually fall beyond initial listing price! Better invest in TBills or GRZ Bonds.
If you read the documentation you will not that effective today anybody can purchase the ZDRs without a minimum subscription. Zango Tbills and GRZ Bonds are for sissies and not easily tradable in Zambia. Giving you safe returns that are marginally above inflation (and in some cases below). Further applying your logic you need a minimum of K30mn to purchase GRZ securities unless you go through a trust account – why is this OK but not OK for other securities?
thanks to all that answered my questions. i think LUSE must market itself better because it seems the masses dont know alot about the happenings there at LUSE. for example the site has no real time feeds on trades and news.
coming back to # 3 Zango i think you are overlooking the cross border traders and self employed who i know can raise that kind of money with a bit of sweat. LUSE and the brokers have done little to market themselves to these people. i am a rookie forex trader myself, iam trying to go into stock.
@ # 7 saddist
You are spot on!!Tbill and GRZ Bonds are for sissies!!I wish the King Cobra would encourage people to invest rather than telling the more money in their pockets and other slogans like donchi kubeba!!!
No 3 Who told you that every Zambian is supposed to benefit. In which country have you seen every citizen benefit from the country stock exchange shares? You need to be realistic and except that the world has to kinds of people the poor and the rich. Do not live in dream land. And if you happen to be poor tuff luck for you
# 7, you definately got info coz you are spot on!!
the chances of investing in a trust for ZDR’s is even better than for the bonds, coz even though they may offer an attractive annual interest rate, it is very marginal and usually goes below the interest rate advertised! this is true for most unit trusts on the market.
today it is open for everyone who is (HAVING) to invest. i personally will put in my bids for those dual listed ZDR’s coz in a few weeks time, the price will skyrocket!!
I am waiting for the usual ‘how does this help my relatives in Shangombo’ hogwash from the usual pf suspects.
@ #12 Lyambai Lyambai
Forgive the PF suspects for being so incorrigible.They will never ascend to power in Zambia let alone Afghansta or Taiwan.
What has the PF and Sata got to do with listings on the stock exchange? Let us face it, majority of Zambians do not understand these stock market thing. Buying shares or even keeping money in a savings account does not help is this country because these institutions take advantage of Zambian by changing too high interest rates while GRZ does nothing, hidden fees. Look at what is happening with Celtel shares? Airtel was offering very low price for the shares than the value, even than what they were bought at. The easy way is this country and if u want some sleep buy as much property as u can. A K50m worth of property today will be worth twice coming five years and you would have made a lot more from lease and rentals. That is how Sata is still not broke.
I am not a financial adviser, I’m just using common sense.
The ‘corporate governance issues’ (corruption), with regards to the non-payment of taxes, the possibly illegal development agreements, the corruption at ZCCM-IH make any of this extremely speculative.
If you want to invest, buy real gold – bars, coins with little or no historic value. And maybe hedge that with a short side exchange trade fund, just to be sure against a drop in commodities prices.
There is a huge speculative boom in commodities prices, that is driven by the financial sector, not the manufacturing sector. Those prices will only collapse when there is legislation passed that reduces the leverage companies can use (increase commodities futures margins, for instance).
just dont cry if you have bought at the peak of the market :((
The way the issue of economic development and the markets are handled, is completely oriented toward foreign investors. Maybe the MMD does this because the World Bank wants it, or as a local elite they don’t want to see competition to their economic power.
However, there are ways to make local stock and debt markets accessible to local organisations. WITH OVERSIGHT AND WITHOUT CORRUPTION, local authorities could issue bonds to finance local banks and entrepreneurs. Liquidity has to be introduced to local Zambian entrepreneurs, in order to reduce unemployment.
but the reality is that Zambians are a self-defended people. They will throw the “white” textbooks and theories on why something will not work AND then wait/watch while the foreigner does it for them AND AND then turn around blame Government. I mean how can a guy come from Chinese prison and serve you nshima with kapenta, which you consume while blaming the Government. The logic beats me….
Tell me pipo how much is a share of c e c and national breweries costing help your fellow zambian pliz.