ZCCM-IH has put out an expression of interest (EOI) inviting bids for advisory services to successfully upgrade its Euronext listing.

According to the EOI, ZCCM-IH has a secondary listing on Paris’ Euronext Exchange since 1970 in the Access Tier which it now wishes to upgrade to the Growth Tier as a way of restructuring its listings to enhance shareholder value, increase its visibility and trading activity on its secondary listings, which include the London Stock Exchange.

The company, whose primary listing is on the Lusaka Securities Exchange (LuSE), states that currently, its share activity on all three exchanges has been plagued with illiquidity and a decreasing or stagnant stock price, despite a positive turnaround in the Company’s earnings. Hence, the restructuring.

The key objectives the advisory firm is expected to meet are to advise on the listing upgrade methodology and to actualize the listing upgrade “in a manner consistent with all applicable rules and regulations.”

The EOI states that currently, 6.6% (10,619,577) of ZCCM-IH shares are listed on Euronext and that significant share trading takes place thereon.

ZCCM-IH is owned 17.25% directly by the government of Zambia and 60.28% indirectly through an investment company wholly owned by the government, the Industrial Development Corporation. The remainder 22.47% is held by institutional and individual investors.

ZCCM-IH has lately been pushing an expansionist agenda seemingly in tandem with heightened political and government rhetoric on increased local participation in the economy, particularly in the extractive sector.

Source : https://zambiandigest.com/2021/02/zccm-ih-seeks-listing-advisor/