Centre for Trade Policy and Development (CTPD) has called for prompt actions to ensure ZCCM-IH resolves the identified issues that led to its temporary suspension from the London Stock Exchange (LSE), which holds a market capitalisation of US$57.67 billion as of May, 2023.
Programmes Coordinator, Natalie Kaunda, said in a statement on Wednesday.
On May 2, 2023, the LSE temporarily suspended the ZCCM-IH from trading on the Bourse due to non-compliance and failure to publish audited financial results for 2021 and 2022, which violates the Financial Conduct Authority (FCA) Disclosure and Transparency Rules.
This unsettled many stakeholders such as CTPD who hold views that a formal listing of ZCCM-IH securities on the LSE provided a significant opportunity for growth of the company due to increased investment opportunities.
Kaunda in her reaction pointed out that getting back on the LSE would enable ZCCM-IH to continue to derive benefits from its secondary listing on the stock market.
“As of May 2023, the LSE has a market capitalization of $57.67 Billion, compared with Lusaka stock exchange (LuSE) whose market cap is ZMW 77.48 Billion (approximately US$4.2 Billion).
“This capitalisation is important for investors when they make long term investments decisions, and markets with a higher market cap provide more opportunities for potential return and reduced risk,” she said.
She stressed that a listing on the LSE enabled ZCCM-IH to raise capital through an increase in shareholders while strengthening its structure and reputation which Ms Kuanda said was useful to support the company’s operations and growth plans.
The listening, according to Kaunda, provided liquidity to investors of the investment holding company and ensured effective monitoring of compliance of the issuer and trading of the securities in the interest of investors.
“With this, CTPD urges for prompt action to be taken by the ZCCM-IH in resolving the issues identified that led to a temporary suspension of the company as this will enable it to continue to derive benefits from its secondary listing on the stock market.
“We are therefore of the view that the Government must resolve the challenges pertaining to Konkola Copper Mines and Mopani Copper Mines which may have resulted in the delay of having finalized financial statements by ZCCM-IH,” she said.
Kaunda insisted that deliberate steps should be made to address challenges quickly and effectively within the mining sector, so as not to have a recurrence of the suspension, which could potentially impact government revenue generation.
“A formal listing of ZCCM-IH securities on the LSE provides a significant opportunity for growth of the company due to increased investment opportunities,” she said.
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