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(TIMES) Financial market is protected, says Wiessing

Financial market is protected, says Wiessing
By Business Reporter

THE Zambian financial market is insulated against shocks currently being experienced by global financial markets, Zanaco managing director Mark Wiessing has said. And the Zambia Privatisation Trust Fund (ZPTF) has completed its mandate of selling Government shares in privatised companies through the stock market with the sale of 25.8 per cent shares in Zanaco.

Mr Wiessing, who was speaking during a Press briefing to mark the official announcement of the initial public offer (IPO) for the 25.8 per cent shares that the Government held in Zanaco, said Zambia was relatively well regulated to avoid the effects of such financial calamities.

He was responding to a question on the timing of the offer of Zanaco shares to the public through the IPO, and onward listing on the stock exchange, at a time when there was turmoil in the global financial markets.

“Zambia is relatively insulated. I think that the Bank of Zambia is doing a commendable duty to protect the Zambian economy through a well regulated financial market,” Mr Wiessing said.

He said the IPO was well intended to benefit the domestic market and what was important was that the fundamentals of the offer focused on empowerment of Zambian citizens.

The ZPTF yesterday offered the 25.8 per cent Government shares held in Zanaco through the IPO on the Lusaka Stock Exchange (LuSE), the largest Government share offer, which is expected to realise K140 billion.

ZPTF trustee Chileshe Kapwepwe said the offer comprises a preferential offer of 25,396,875 shares to Zanaco employees and 228,571,877 shares to the public, priced at K470.

With the offloading of the 25.8 per cent shares held by ZPTF, plus the 0.2 per cent currently held by minority shareholders, the public would now have a combined 26 per cent stake in the bank, while Government would remain with 25 per cent and the Rabobank Group of Holland with 49 per cent shares.

Ms Kapwepwe explained that the ZPTF had completed its mandate of holding and offloading Government shares in privatised companies.

Simultaneously, Zanaco has also offered an additional 44,021,250 new ordinary shares for subscription to its shareholders, including the public who would take up the allocation that was supposed to be for ZPTF, in order to raise K80 billion for investments in product development, staffing, infrastructure and expansion.

Charles Mate, managing director for Stockbrokers Zambia the company appointed stock broker in the IPO offer, said the National Pensions Scheme Authority (Napsa) had invested K50 billion in the arrangement as an underwriter.

Mr Mate said Napsa will also participate in the offer for subscription, adding that the decision by the pensions scheme authority to participate was a blessing and a sign of confidence in the offer.

The offer opened on Monday and would close on October 23.

Labels: FINANCIAL CRISIS, MARK WIESSING, ZPTF

posted by MrK @ 8:48 PM