First Quantum lists 40 million shares

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Tuesday, June 29, 2011

By DARLINGTON MWENDABAI

FIRST Quantum Minerals (FQM) Limited says it will list its 40 million Zambia Depositary Receipts (ZDRs) which are ordinary shares on Lusaka Stock Exchange (LuSE) on July 6, 2011.

ZDR are a block of ordinary shares of FQM that will be issued by depository bank, Bank of New York Mellon and held by a custodian-Stanbic Zambia on behalf of the depository bank.

The ordinary shares will be listed at an initial price of K4, 700 per share.

FQM secured the approval for the 40, 000, 000 ZDRs to be listed on the local stock exchange and to be held in the Central Securities Depository of the LuSE.

The company said in Lusaka recently that the ZDRs will be listed solely on the LuSE where they will be traded and regulated by the rules applicable to ordinary securities listed on that exchange.

The Bank of New York Mellon will act as depositary and custodian and will hold the underlying common shares, together with any securities, cash or other property attributable to shares that have been deposited with the custodian.

The company, however, warned that there are risks in investing in depository receipts as there is no assurance that past performance of the underlying common shares of the company will be repeated.

Pangaea Renaissance Security Limited is the only broker of the FQM depository receipts, which are only applicable to Zambians and Zambian-registered companies.

And in a separate statement in Lusaka yesterday, Madison Asset management Company Limited under its Madison Unit Trust said the ZDRs will be traded and regulated by rules applicable to ordinary shares listed on the LuSE with a minimum primary subscription of K50 million.