MTN listing discontinued after share offer flops



The controversial listing of MTN shares on the Lusaka Stock Exchange through Ikulileni Investments Plc has sensationally been pulled off after the share offer was under subscribed.

Ikulileni Investments Plc was tomorrow, June 16th 2015 set to debut on the LuSE with 11.9 percent of MTN shares but the offer has been shelved with only 24 hours to go before the actual listing.

The share offer was marred with controversy after it was discovered that some Directors in MTN such as Board Chairman Valentine Chitalu are also shareholders in Ikulileni Investments Plc.

It was further revealed that Ikulileni Investments Plc did not meet the listing rule of having a three year profitability history since it was only incorporated in October 2014 for purposes of creating a Special Purpose Vehicle for the MTN listing.

Market insiders have exclusively revealed that the Ikulileni Investments has been pulled off after the Initial Public Offer recorded low subscription.

The institutional investors who have bought shares on during the Initial Public Offer will now be refunded their money.

Pangaea Securities Ltd, the sponsoring broker is on Tuesday expected to release a statement in the newspapers explaining the sensational flop of the share offer.

A source said the negative response to the share offer has been blamed on bad press that the controversial listing had attracted through online and newspaper reports.

It is believed that MTN has lost close to K1 million in sponsoring the share offer and the entire transaction and will request government for a three year extension before it can consider coming directly to list on the exchange as part of the licence requirements.


    • No a win for chipuba minister who said he would buy share to show Zambians how to subscribe to tainted shares!

    • Abena Yamfwa publicly supported this listing. This is the credibility of the type of people entrusted with leading the nation

    • Talktime and bundle in zambia are a rip off. I was in zed April guys it is crazy bundles as they call them just are demn expensive. There is too much stealing by these companies.

    • @house fly, I agree with you totally. I once was conned when MTN sold me 3Gb of data and informed me I had a free 3Gb to use before midnight. We downloaded a few goodies just shy of this. The following morning we had 0Gb data available. We were informed they would look into it but four days later we flew out as they continued looking into their frauds…

    • MTN should go and list directly on the stock exchange instead of using jemasoni suitcases. People behind this listing should be prosecuted in 2016. Listing on Luse is one way of empowering Zambians.

    • MTN wants 3 year extension so that Ikulileni would have qualified to list by then. This must be stopped. MTN must list tomorrow using their name. Anyone allowing MTN not to follow the law of listing 10% must be made to account.

  1. Useless people have been caught out. Why did they go ahead when the said company did not meet the listing requirements on the Stock market. They have just wasted 1 million K. It should remain private as the ordinary shareholder wouldn’t tolerate such incompetence. Just a way for the fat cats to get fatter with more cash. Next time do things properly.

  2. Track. Record in cash flows with intrinsic value implied in those shares for people to really commit value from now for a future dividend. Is it in MTN performance or ikulileni products

    MTN Zambia ownership model and structure from parent will be value

    Then do not cheat people on floatation costs. It shows lack of roburst investments management in these IPO s

    Look at the treatment of floatation costs on cost of capital and you issue shares as a risk in var at risk and transfer the risk in those flotation costs especially that you cannot rig the markets and guarantee performance in IPOs

    It cannot stand at law

  3. I am embarrassingly blank where shares and stock markets are concerned. Just wondering, is there a maximum number of shares a private citizen can buy in these IPOs? Let’s say I am a multi billionaire (wish I was), then I choose to buy the remaining unsubscribed shares (as an individual), will Lusaka Stock Exchange regulations allows me? Any experts to shed more light?

  4. Full time suspected white collar crime. All the more suspicious that directors of mtn were also directors in ikululeni. What is that thing about mtn losing K1,000,000 and asking to extend listing time by three years? Is that Grz fault? Did you consult the owners of grz us the taxpayers? Why didn’t you heed the warning from Fube when eye brows were raised and mouths opened?

  5. Why in the first place were they allowed to list if they did not meet the minimum requirements of the bourse?
    Why did chipuba support the listing?
    Goes to expose how corrupt these politicians are.

  6. The chosen one depending on the issue and what time of investor and relationship you have as related parties

    The stricter rule is to treat all clients on trade in desemination and trade fairly and shares with efficiency in information and value will often attract many and pro rata will be the rule

    For this ikulileni there’s is a danger of pump up strategy by those wishing to create artificial volumes and price and limitations and market watch will be normally be in place as to who is buying and selling by the regulator to avoid market manipulation

    Suspensions and restrictions of trade will be appropriate but then a fundamental trader will not simply throw his margins and money like that in an efficient market

    Tributes to good people GMARRY intellectuals ba sata ba pa zawa

  7. It was so easy to find what these guys and what they were up to on Bloomberg Business. A simple Google about the name is all it took and poof! It all was revealed. Well, the truth finally came out. Where is Mr. Arrogant minister now? We will continue to unleash the truth.

  8. Someone has to be fired at the stock exchange for allowing a company to list without meeting the three year profitability requirement. Why allow this blatant corruption to go ahead in full view of the public and not have someone accountable? I would fire the CEO of the exchange because it happened under their watch. They must be tolerant of the corruption to let it happen.
    I have money invested in multiple companies on the exchange. But this just tells me the leadership is rotten and unprincipled. Very sad indeed at a time I thought we were making progress. This is a major step back. I am very angry.

  9. This is fabulous news…the corrupt politicians who will elected like the other buffoon Mukanga and fossil Chikwanda could even protect or shield us from this scheme..fortunately the people saw through this scam.

  10. This should be a lesson to all investors and government that Zambians have woken to manipulation both from business men and or GRZ.

  11. All the critism that was labelled at this listing had facts that is why the campaign has succeeded. With facts people will support you.

  12. All the criticism that was labelled at this listing had facts that is why the campaign has succeeded. With facts people will support you.

  13. Proud to be Zambian right now. Let us show these corrupt leaders that we are now awake and will not be taken for granted anymore.

  14. Baye bakule bwino then tukesebafwa for shares of mtn of that quality you can see the P/E EPS it should have been oversubscribed. But the ownership structure was the issue its like one of those akake structures that takes you time to plot on the board eventually realize no intrinsic value now and worse after only to slamp and never rise to activate any gains

    Kabiyeni mukulebwino bane will support you and your shares will say will little froatation and cost of capital not being overpriced like that. We like you abena uka but go and build well

  15. Your shares will sell father with minimal froatation costs that reflects correctly the value of shares in cost of capital not that overpriced you failed to read the market and crush landed on the exchange floor like my Zimbabwean friend would say

  16. Fube, Enock Kavindele, Edith Nawakwi and our very own Chibamba Kanyama successfully dismantled this fraudulent failed listing. These crooks will lick their wounds after this failed attempt. Now is time to refund those who were almost duped!

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