ambia’s first Initial Public Offer in six years, the Madison Financial Services share offer was fully subscribed by mainly individuals.
The development shows the growing appetite for individual shareholders to own equity as Zambians seek different investment options.
A statement from the Lusaka Stock Exchange shows that the Madison Financial Services IPO which opened on 1st August 2014 met all the objectives with the full 20,000,000 shares offered being fully allocated.
All individual investors who applied for the shares have been allotted the full amount of shares for which they applied under the Officer for Subscription.
A total of 1,463 applications were received from individual, institutional, local and foreign investors.
African Life Financial Services took up 6,000 shares totaling K 15.5 million which represents 25 percent of the total allocation of 200,000,000 shares.
Gross proceeds from IPO amounted to K 62 million.
Participation by individual investors was 1,280 representing 86 percent participation with 3.008.154 shares allotted representing 15.0 allocation.
42 institutional investors participated representing 3 percent in participation with 14,220.000 shares applied for representing 70 percent while 14,002,048 shares were allotted representing a 70.1 percent allocation.
161 employees of Madison Financial Services participated in the IPO representing 11 percent in participation and shares applied for was 14.7 while the number of shares allotted was 2,969,800 representing a 14.9 allocation.
Madison Financial Services is expected to fully list on the Lusaka Stock Exchange on Monday August 25 2014.
“Board and management of Madison Financial Services Plc thank all investors the resounding support and a vote of confidence in Madison Financial Services Plc and look forward to an exciting growth trajectory as a fully listed company on the LuSE,” read the statement.