Madison IPO hits K62m

MADISON Financial Services (MFS) has raised K62 million in gross proceeds from the initial public offer (IPO).
In June, MFS offered a 40 percent stake in the company in which about 20 million shares were floated to investors at a price of K3.10 per share in terms of IPO.
The impressive response to MFS’s first share offer will now prepare the company for listing on the Lusaka Stock Exchange (LuSE) this month.
An IPO is the first sale of stock by a company raising revenue through issuance of debt or equity to the public for the first time.
According to the results of the IPO availed to the Daily Mail in Lusaka on Wednesday by Stockbrokers Zambia Limited (SBZL), there was an impressive turnout of the IPO, with 1,463 applicants from individual, institutional, local and foreign investors.
“The gross proceeds from the IPO amounted to K62 million, the entire issued share capital of MFS comprising 50 million ordinary shares is anticipated to be listed on the LuSE on Monday, August 25, 2014.”
MFS welcomed all new shareholders in MFS Plc, saying the IPO response was a resounding success as evidenced by the confidence shown in the company.
SBZL says African Life Financial Services Limited took up five million shares totalling K15.5 million, which represents 25 percent of the total allocation of 20 million shares.
SBZL has also urged prospective investors to exercise caution in dealing in securities that – by their nature – are volatile and subject to price fluctuations.
The firm says the purpose of the IPO and listing was to seek equity participation of Zambian citizens and institutional investors, thus bringing MFS to operate as a fully-fledged and indigenous public company.
It also wants to broaden the shareholding to meet requirements of Bank of Zambia to enable MFinance to activate its deposit-taking licences.
The other aim is to provide a credible platform through which the shareholders of the company may realise their investment in MFS Plc through trading of shares on LuSE’s secondary market and to enhance the public image and profile of the firm.
The allocation and allotment criteria comprised individual investors who applied for shares in the offer and  have been allotted the full amount of shares for which they applied, under the offer for subscription.

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