Celtel Zambia shares set to trade next week

Mergers, Acquisitions and Financial Results

Shares of Celtel Zambia, which recently had Zambia's biggest IPO are set to start trading next week. The IPO for Celtel Zambia, the country's largest mobile phone operator, closed on May 20, and officials say it was oversubscribed.

The market flotation will come on the heels of a similar move by Safaricom in Kenya, whose IPO was also oversubscribed, and which will launch shares on the market June 9. Twenty percent of Celtel Zambia was offered to the public and investors through appointed agents. The price for shares was 640 kwacha (US$0.19). The stock will start trading June 11 on the LuSE (Lusaka Stock Exchange).

Because there was more demand than allocated shares, allotment letters and refunds will issued by Pangaea Renaissance Securities, the joint lead manager and sponsoring broker, on or around June 10. "The selling shareholder will provide preference in the allotment process to the Zambian Public and Zambian institutional investors," said Pangaea Director Ceaser Siwale. But Siwale also noted that the selling shareholder reserves the right to accept applications, either in whole or in part, or to accept some applications in full and other in part, or reject or all applications in such manner as it may determine.

Celtel Zambia is part of the Kuwait-owned Zain Group. The primary idea for the IPO was to afford the Zambian public, Celtel Zambia employees and selected financial institutions the opportunity to participate directly in the growth of Celtel Zambia, according to Siwale. Also, there has been a need to enhance the public image, profile, investor and general awareness of Celtel Zambia and to encourage wider ownership of Celtel Zambia shares in general to support the development of the Zambian capital market, Siwale said.

IDG News Service