Lafarge Zambia floats additional shares as it gets closer to LuSE 25% Free Float threshold
Lafarge floated more of its shares on the Lusaka Stock Exchange which reduced its parent company's holdings to 77.37% from 84% -- 2.37% away from LuSE's Free Float Compliance program which requires any firm listed on the LuSE to float at least 25% of shares to be available for day-to-day trading. Lafarge received bids in excess of 25m shares for an available 18m which shouldnt be surprising because the stock is up 65% year-to-date on the back of blockbuster earnings in 2013. Profit after-tax increased by 14.6% to K338m in 2013.
Adhering to the 25% free float is very important for the growth of the LuSE which still only has 21 stocks listed. The more listed companies meet the threshold the more shares will be available for trading which will make it more efficient to buy and sell. As things stand, the LuSE is quite illiquid. Hopefully more listed firms comply with this rule this year because the stock market plays a vital role in an economy in terms of capital-raising and transparency of corporations.
Dangote Industries Zambia fined K18,000 by National Construction Council
Dangote Industries was fined K18,000 for contracting companies that were not registered with the National Construction Council (NCC). The 3 contractors that Dangote had hired were also fined K18,000 each. The company is 4 months away from going live with its $450m cement plant in Ndola whose construction began in 2012. The plant will have the capacity to produce 1.5m MT of cement annually.
Union Gold plans to construct K70m hotel in Ndola
Union Gold - the company that manages Protea Hotels Zambia - announced plans to construct an 80 room hotel opposite Levy Mwanawasa stadium in Ndola. This will be the firms 8th hotel in Zambia. No official timeline has been given yet as to when the construction was set to begin and how long it would take to complete. According to Union Golds Chairman in an interview with the Post newspaper, the thinking behind the hotels construction is to tap the traffic that football is bringing to the area, i.e. housing football teams, fans etc.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *