Imara and SBZ win Zanaco IPO

Botswana-based Imara Corporate Finance and Lusaka-based partner company Stockbrokers Zambia (SBZ) have announced that they have been appointed to manage the disposal of the Zambia Privatisation Trust Fund’s 25.8% of the ordinary share capital of Zambia National Commercial Bank PLC (Zanaco), via an IPO followed by the listing of Zanaco on the Lusaka Stock Exchange (LuSE).

The IPO and privatisation are scheduled for mid-year 2008. Rod MacLeod, chief executive officer of Imara Corporate Finance, commented: “This stake in Zanaco represents the last valuable asset held by the Zambia Privatisation Trust Fund (ZPTF). As such it is the last significant privatisation initiative of the ZPTF, and we’re honoured by our selection as lead advisers. “The ZPTF was established to acquire and hold shares in former state-owned
enterprises in trust for the citizens of Zambia. These holdings of ZPTF have systematically been privatised over the years through re-sale to Zambian citizens and eligible institutions.”

In April 2007, Rabobank, a leading Dutch bank, bought 49% of Zanaco from the Zambian Government as the first step in Zanaco’s privatisation. After the ZPTF disposal, Government will retain a 25% equity stake in Zanaco. Charles Mate, CEO of SBZ, noted: “The current transaction is the culmination of one of the more successful privatisation programmes on the African continent. “National policymakers and officers of the Zambian Government and the ZPTF are to be congratulated on the steadfast implementation of economic reforms. As a result of their vision the aim of much wider share distribution among Zambian nationals is being achieved. As a result the LuSE has seen tremendous growth in the past three to four years rising to a market capitalisation of USD 4 billion and has been one of the top performing emerging markets globally.”

Zambian citizens, companies and institutions will be favoured in the current sale of Zanaco equity. Zanaco is Zambia’s largest commercial bank with a recently strengthened IT platform, the country’s largest branch and ATM networks and a strong brand name.

The Botswana-registered Imara financial services group has offices and partners in Gaborone, Nairobi, Johannesburg, Harare, London, Blantyre, Windhoek, Lusaka and Dubai. Activities include corporate advisory services, stock broking and asset management. In the fiscal year ended 30 April 2007, Imara generated approximately US$7.4M profit after tax on approximately US$10M in sales. Imara emerged out of Robert Fleming UK, and Adam Fleming is a non-executive Director of Imara and Zambeef.

SBZ in its original form was one of the founding members of the LuSE, and has conducted numerous IPOs, rights issues and other corporate actions on the LuSE, and is an active broking member of the LuSE.