.CHIKWANDA

By JUDITH NAMUTOWE and MAIMBOLWA MULIKELELA –

THE Industrial Development Corporation (IDC) will spearhead the initiative for State owned enterprises’ participation in the capital markets to raise funds, empower citizens and boost the local bourse.
In that vein, the Government is in the process of offloading some shares in the ZCCM-Investment Holding on the Lusaka Stock Exchange (LuSE) to reduce the shareholding to 60 per cent from 87 per cent.
Finance Minister Alexander Chikwanda said this yesterday when he officiated at the Securities Exchange Commission (SEC) launch of capital market awareness campaign under the theme, “Let’s talk Capital Markets” campaign.
Mr Chikwanda said allowing the IDC to lead the initiative was good as it would grow capital markets and further empower more Zambians to own a part of enterprises through share ownership.
The campaign is aimed at increasing stakeholders’ participation in the country’s capital market and raise the liquidity levels.
“With such an approach we can see companies increase their operations and ability to contribute to the development of the economy.
In particular, we would like to bring on board our very own Small and Medium Enterprises (SMEs) that Government has recognised as the engine for development.
Mr Chikwanda has promised the 27 per cent Government shares in ZCCM Investment Holdings will be sold to Zambians and institutions.
At the Same occasion SEC chairman Chintu Mulendama said he believed that the campaign was a milestone in its aspirations because it was the perfect vehicle to become shareholders and enjoy first-hand, the benefits to be in the market.
Earlier, SEC chief executive officer Philip Chitalu said the Finscope Demand Surveys revealed that as at 2009 about 37 per cent of the adult adult population was financially included, while capital markets stood at two per cent.
In a related development the Engineering Institution of Zambia (EIZ) Properties Plc has offloaded 30 million shares on the LuSE to raise K60 million for the construction of its headquarters in Lusaka.
EIZ is a major shareholder of EIZ Properties Plc as a special purpose vehicle meant to raise finances in sum of K60 million for the construction of its headquarters.
EIZ president Bernard Chiwala said his organisation had offloaded 30 million shares at an issue price of K2 per share payable in full on application.
The land will house the EIZ head offices, approximately 600 seater auditorium and rentable office space and among other facilities.
He said the construction of the EIZ headquarters started in October last year and was expected to be completed in November 2016.
Mr Chiwala said the project would cost K47 million based on the designs approved by the EIZ council.
He said that only institutions and EIZ members can buy the shares.
“The closing date of the offer is June 1,2015,” Mr Chiwala said.