FIRST Quantum Minerals (FQM) Limited says it will list its 40 million Zambia Depositary Receipts (ZDRs) which are ordinary shares on Lusaka Stock Exchange (LuSE) on July 6, 2011.
ZDR are a block of ordinary shares of FQM that will be issued by depository bank, Bank of New York Mellon and held by a custodian-Stanbic Zambia on behalf of the depository bank.
The ordinary shares will be listed at an initial price of K4, 700 per share.
FQM secured the approval for the 40, 000, 000 ZDRs to be listed on the local stock exchange and to be held in the Central Securities Depository of the LuSE.
The company said in Lusaka recently that the ZDRs will be listed solely on the LuSE where they will be traded and regulated by the rules applicable to ordinary securities listed on that exchange.
The Bank of New York Mellon will act as depositary and custodian and will hold the underlying common shares, together with any securities, cash or other property attributable to shares that have been deposited with the custodian.
The company, however, warned that there are risks in investing in depository receipts as there is no assurance that past performance of the underlying common shares of the company will be repeated.
Pangaea Renaissance Security Limited is the only broker of the FQM depository receipts, which are only applicable to Zambians and Zambian-registered companies.
And in a separate statement in Lusaka yesterday, Madison Asset management Company Limited under its Madison Unit Trust said the ZDRs will be traded and regulated by rules applicable to ordinary shares listed on the LuSE with a minimum primary subscription of K50 million.
And there was an impressive trading activity on the Lusaka Stock Exchange (LuSE) last week with turnover rising to over K8 billion from K6.6 billion recorded the previous week.
According to LuSE weekly update for June 24, 2011, a total of 4,726,502 shares were transacted in 144 trades yielding K8.3 billion.
Overall trading activity occurred in 16 listed stocks namely; African Explosive Limited Zambia (AELZ), Bata Shoe Company, British American Tobacco (BATZ), Cavmont Capital Holding Zambia, Copperbelt Energy Corporation, Lafarge Cement Zambia and Farmers House.
Others were Investrust Bank Zambia Plc, National Breweries, Standard Chartered Bank Zambia, Shoprite, Zambeef Products, Zamefa, Zambian Breweries, Zanaco and Zambia Sugar.
The index, which measures performance of stocks on the stock market, closed last week at 3,926.15 points down by negative 1.69 percent from previous week close of 3,993.55 points.
The index reduced due to losses in most listed stocks on the stock exchange as a result of reduction in share prices.
However, on a year-to-date in Kwacha terms, the index rose by 18.83 percent and 18.23 percent in United States dollar terms.
[Zambia Daily Mail]
get ur money ready guys…..minimum subscription of just over 1000 USD
Peace on earth. Thanks Lord for the wonderful country, fresh air, fresh fruits, fresh vegetable, milk, land, resources and diversity.
What is one SDR equal to First Quantum’s listed share on Toronto Stock Exchange?
Is it 1/100th of one share listed on TSX? Assuming it is so, it means around 400,000 shares only are listed on LuSE.
Would appreciate if Zambians are given more shares for them to have equitable share of their resources plus it is in the interests of First Quantum Shareholders, management and board as well. Local participation and stake ensures automatic balancing, alignment and continuity of interest for mutual benefits.
Let Lumwana, KCM, Mopani also follow the suit and may be by law it shall be made a rule that above a certain threshold, 51% shareholding shall be listed
on LuSE.
There shall be transparency in value of a share listed on LuSE vis a vis that listed on TSX. This will ensure fair and equitable distribution of dividend and participation in capital appreciation. Also, how a voice in AGMs/Extra-ordinary General Meetings be granted to shareholders (just around 400,000 in number, assuming 4,700 price is for 1/100th of the price prevailing on TSX) and representation on the board?
LuSE and First Quantum shall provide some more meat to the investing public.
Peace be on earth.
Fyabupuba, i remember a friend who at one time in the early 90s bought shares in chilanga cement when they were first floated.he put in about 5m.it was a lot of money then.he started boasting and we were envying him that he was a shareholder in chilanga cement. Yah! When the dividends came chikalaa vomited he couldn’t believe the peanuts he received.i had then invested my crumbs in smuggled nigerian video tapes and i was laughing louder than the investor.so bane get more info before you become another investori was laughing louder than the investor.so bane get more info before you become another investor
We need a stake long overdue! #2 right can they follow suit.
400,000 -equivalent- shares / 95,000,000=0,42%
zambian people will own 0,42% FQM capital
indeed we will own our mines and our wealth.. ! LOLLL
and our shady leaders boast…
kick out those crooks !!!