Zambia's Celtel IPO gets off ground

Celtel Zambia's initial public offering (IPO) is in full swing, with shares being offered to local and international investors until May 20.

The offer was originally supposed to have been launched on April 28 but was postponed to April 30. A limited number of shares are being offered to the public and investors through appointed agents, including stock brokers and banks. The public and investors will buy 20 percent of the company's shares through the banks and the stock brokers at a fixed price, 640 kwacha (US$0.19) up to May 20, when the offer closes.

On June 11, shares will be listed on the Lusaka Stock Exchange (LuSE). At that point shares will be traded on LuSE, and will fluctuate in price, depending on demand.

Celtel Zambia is a sister company of Celtel International BV, which operates in 15 African countries including Malawi and Nigeria. Celtel Zambia provides voice service, international roaming, pre-paid and post-paid subscription and mobile Internet service to large and small businesses in remote and urban areas.

Zambia Minister of Finance and National Planning Ng'andu Magande said during the IPO's launch in Lusaka that the shares offering would contribute to the country's economic development.

"For years, the money that Celtel Zambia has been making has been going out of the country. But the participation of Celtel in the LuSE through the offer of shares means that money will be kept in the country through dividends," Magande said.

Celtel is the first mobile company in Zambia to offer shares to investors. Celtel networks in other African countries are still working on regulatory requirements.