Celtel Zambia had a strong day Wednesday as shares sold in its oversubscribed IPO were traded on the Lusaka Stock Exchange for the first time.
The IPO (initial public offering) raised 665.6 billion kwacha (US$205 million) for Celtel Zambia, which sold 1.04 billion ordinary shares for 640 kwacha each. The IPO closed May 20. On Wednesday the shares closed at 725 kwacha, a 13 percent premium over the IPO price.
It was the second telecom IPO in Africa this week. On Monday, Safaricom shares started trading on the Nairobi Stock Exchange (NSE) with a 50 percent rise in value by the end of the trading day.
Pangaea Renaissance Securities announced results of the Celtel IPO on Tuesday, and refunded money where applicable. The IPO generated strong demand, amounting to 2.04 trillion kwacha — more than three times the value of shares offered. Of the total demand, 1.7 trillion kwacha came from international investors.
Letters of allotment confirming entitlement to shares were posted on June 7, 2008, to the postal addresses provided by the applicants on their respective application forms for the IPO.
The allocations were carried out in accordance with the policy stipulated in the prospectus.
Accordingly, applicants that qualified as Celtel employees and the Zambian public were allotted the full amount of ordinary shares for which they applied. The balance of the shares was allotted to the domestic and selected international institutional investors on a discretionary basis.
Domestic Institutional Investors and selected International institutional investors were allotted 88.2 percent and 51.5 percent, respectively.
Celtel Zambia is a unit of Kuwait-based Zain.
