ZSIC Life seems to have abandoned plans and ignored a standing government directive to list on the Lusaka Securities Exchange – LuSE after about four years of dragging its feet to offer some of its shares to the public and become more transparent.
The life insurer has opted to remain mute on when they will finally get listed on LuSE after the first announcement and government directive in the 2019 national budget. The company has however not yet been listed despite its peer – ZAFFICO, successfully listing after being announced at the same time.
It has been about four (4) years since the initial announcement, but the company has not been listed yet. Should it surely take a decade (10 years) to list? Efforts by the Zambian Business Times – ZBT to get a confirmation from ZSIC Life and find out how far the company has gone with the process of getting listed on LuSE proved futile by press time.
ZBT has since followed up with a press query but indications from ZSIC Life are that there is a new board that has been appointed and would only revert after they have settled in. However, analysts say the time lapsed may signal that this listing may have been abandoned.
ZBT on the 30th of July 2020 reported that the government had in 2019 announced that both ZAFFICO and ZSIC life would be listed on LuSE to enable the state-owned companies to raise more capital for investment and achieve the added benefits of listing which resulted in the improvement of corporate governance and best business practices.
The Industrial Development Corporation –IDC, the holding company of ZSIC Life had confirmed plans to list ZSIC Life on LuSE in the very year as reported by ZBT on August 18, 2020. IDC public relations officer Namakau Mukelebai then told the ZBT in an exclusive interview that the action is part of the wider strategic intent of IDC to position ZSIC Life for wider public participation, with the medium-term objective of listing on the main board of LuSE.
Mukelebai further confirmed that delays were experienced on account of travel restrictions associated with the COVID-19 pandemic. She had further noted that it is a strategic intent of IDC to have ZSIC Life listed on LuSE as soon as market conditions allow as it is consistent with the aspirations of IDC to see wider public participation in the shareholding of profitable public enterprises and support the deepening of the domestic capital markets by providing supply of quality listings.
In 2021, ZSIC Life postponed its initial public offer – IPO listing of its shares on LuSE to the following year 2022. The company was expected to undertake a public offer of its shares in 2021 following the postponement of its listing in 2020. It is now the end of 2023 and the insurance company has not shared timelines or specific plans to list on the local bourse.
Listing on the LuSE is critical, especially for loss-making and companies that are breaking even as it is one key way of ensuring accountability and efficiency in the State Owned Enterprises – SOEs. Listing further helps to ensure high standards of corporate governance thereby promoting profitability through improved financial performance.
