Zambian firm looks to list equity on BSE

Following the approval a $500 million debt listing on the Botswana Stock Exchange (BSE), Zambian fertilizer firm, United Capital, has expressed interest of listing equity on the local exchange.

In an interview with Business Monitor on the sidelines of a bell ringing ceremony last week, United Capital chairperson, Chance Kabaghe said the company is exploring an equity raise on the BSE depending on whether the bond capital float proves to be fruitful.

Kabaghe said moving on with an equity listing on the domestic bourse is on the table with the company’s team pleased with the track record of the BSE, its strong financial performance and delivery for other companies.

“We are definitely interested in an equity raise and it’s still very much on the table,” he said.

“For our other rounds of capital raises, we will keep our options open but we will see and assess the performance of the bond we have listed first.”

Commenting on why they selected the

BSE for its bond listing, Kabaghe said the company engaged on an assessment of regional stock exchanges and the local bourse came top of the list in terms of solvency and financial stability.

“We were looking for a market that delivers strong financial returns while also offering stability,” he explained.

“We found the BSE to be the exchange that can give us stability and predictable strong returns.

“We were also pleased with the performance and financial delivery of past raises by different companies and it give us confidence that our bond will do well.” The recent listing of the bond on the BSE is part of the Exchange’s efforts to develop capital markets and create products that can attract funding in financial markets. In recent years, the local bourse has intensified its market development efforts, which include investments into technology that ease trades and settlements, as well as ongoing education campaigns.

The local capital market is also surfeit with funds, with nearly P12 billion of the total P132 billion in pension fund assets as at July, held as cash or near cash.