As company ranks in Africa’s top 250 public companies by market capitalisation
LUSAKA, ZAMBIA – Zambian Breweries has celebrated 22 years of stock exchange listing with country director Jose Moran ringing the bell to mark the start of the Lusaka Securities Exchange (LuSE) trading week.
From an initial market capitalisation of US$10 million in 1997, the company has grown to over US$336 million, making it the largest company regularly trading on the LuSE.
During the same period, the company has seen its beer production capacity grow four-fold. To finance this growth, Zambian Breweries relied on its LuSE listing to generate capital and keep pace with demand.
LuSE chief executive Priscilla Sampa said: The future of the LuSE as well as that of companies presently listed is bright, as is the future of any company that chooses to list and access the capital that can be secured through listing.”
Mr Moran said the brewer’s success in listing was largely due to the LuSE’s capacity to offer potential shareholders lliquidity in the trading of its shares, confidence in the future of the business, as well as a chance for the public to own part of one of the largest manufacturing companies in Zambia.
“Through the years we have been able to use LuSE as a mechanism to raise capital to pay for a lot of the investments we have been making. In the last five years we have been very active in increasing our capacity through the opening of the malting plant in the Lusaka South MFEZ and upgrading the capacity at our Ndola plant. We are also working on a major upgrade of the Lusaka brewery which will take us to the next level.
“Through strategic partnerships, we have also more than doubled production capacity in the last decade which has helped create jobs, increase tax payments and boost the economy,” he said.
It was also a measure of Zambian Breweries’ growth that it recently joined the ranks of Africa’s top 250 public companies by market capitalisation, said Mr Moran, who noted that the company’s success has been in part due to the confidence of investors, which was enhanced by the importance that the Lusaka Securities Exchange attached to good corporate governance.
“We are happy with the relationship we have with LuSE. We appreciate the openness and transparency and willingness to push for more liquidity exhibited by LuSE. As a responsible corporate citizen, Zambian Breweries shares LuSE’s drive to ensure transparency in order to create a liquid, vibrant market that will benefit investors, companies and the nation,” he said.
Mr Moran also revealed that Zambian Breweries is finalising plans for a number of Zambian institutional investors to increase their stake in the company.
The move is expected to increase the percentage of the company’s shares on the market to 25 percent of the total, by releasing an additional 12.13% of its shares.