One of Zambia’s most successful companies, Madison Financial Services PLC has announced the Listing of 40% of its shares amounting to 20 million on the Lusaka Stock Exchange through an initial public.
The IPO which is an offer for sale by existing shareholders will close on 1st August 2014.
Madison Financial Services PLC is a subsidiary of the LSA Group and is the holding company of the financial services Group of Companies in Zambia and groups together Madison General Insurance, Mgen Tanzania Insurance Company based in Tanzania, Madison Life Insurance, Madison Finance Company and Madison Asset Management Company.
Lawrenece Sikutwa and Associates Limited (LSA) holds 80.5 percent in MFS Plc and the International Finance Corporation Limited (IFC), the private sector arm of the World Bank holds the remaining 19.5 percent.
Madison Financial Services was established in 2007 to facilitate the entry of the IFC through equity and debt and IFC’s investment horizon was five years which lapsed in December 2012 hence one of the reasons for the IPO which was an agreed exit mechanism for the IFC.
The history of Madison Financial Services dates back to 1992 when Madison Insurance Company Zambia Limited was formed as the first private insurance company following the liberalization of the insurance market in Zambia.
The main purpose of the IPO is to seek and obtain equity participation of Zambian citizens and institutional investors and thus bring the company to operate as fully fledged and truly Zambian owned public company.
LSA Executive Chairman Lawrence Sikutwa told a media briefing in Lusaka Wednesday morning that listing Madison Financial Services on the LuSE would help increase the customer base and strengthen the firm’s market share.
“The IPO will help broaden the shareholding of the Group to meet the requitements of the Bank of Zambia to enable the Group’s microfinance company Madison Finance Company Limited to activate its deposit taking licence and this will also help promote and strengthen the capital market,” Mr Sikutwa said