THE planned listing of First Quantum Minerals Limited (FQM) on the local bourse will increase confidence in the economy thereby attracting ease finance in the expansion of the mining firm, economic consultant Oliver Saasa has said.
Professor Saasa said the move is a positive development that will bring about openness in the company’s dealings and finance money markets.
Prof. Saasa said this in an interview in Lusaka yesterday.
He said the listing will enable the company to explore venture capital and invest its capital in the economy.
FQM announced its intentions to list its Zambian depository receipts on the Lusaka Stock Exchange (LuSE) by the end of July.
Depositary receipt which trades on a local stock exchange is a negotiable financial instrument issued by a bank to represent a foreign company’s publicly traded securities. It makes it easier to buy shares in foreign companies because the shares of the company do not have to leave the home state.
“What listing does is that there will be ease of financing by raising additional capital in the capital market. When you list, the company goes public and the public will be able to look at the financial transactions hence the quality will be thorough,” he said.
Prof. Saasaa urged other multi-national companies to consider list on the local bourse to reap the many opportunities.
First Quantum Minerals owns 80 percent of Kansanshi mine and has common shares dual-listed on the Toronto Stock Exchange and on the London Stock Exchange.
FQM becomes the first-ever mining company to consider local listing although Vedanta Resources, owners of Konkola Copper Mine (KCM), announced recently its intentions to list KCM shares on the London Stock Exchange and later float shares on the local bourse.
[Zambia Daily Mail]
Well spoken Prof. Great news for economy and bad news for kaponyas. Zambia is definitely moving in the right direction.
Not many DULL kaponya’s to comment…. shows the level of understanding of real issues in Zambia