Listing a company on stock market does not imply a company has been sold – Economist

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Yusuf Dodia

Floating of shares for a company on the stock market does not imply that a company has been sold, an Economist has clarified.

Yusuf Dodia who is also the Private Sector Development Association Chairperson has told Hot FM that listing on the stock market means a company has issued to the public shares that are available for investors to trade.

Mr. Dodia said as ZAFFICO is being floated on the Lusaka Securities Exchange, government must consider issuing a Statutory Instrument on the number of shares that can be sold to a foreign investor.

He said the SI must also highlight the rights of shareholders adding that listing ZAFFICO on the stock market is in the interest of the firm as it will enable it to raise more capital.

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6 Responses to Listing a company on stock market does not imply a company has been sold – Economist

  1. In hakaindes imagination it implies selling.

    Topgun
    November 13, 2018 at 1:53 pm
    Reply

  2. Mr Dodia, when you list shares on a stock exchange (a good thing, by the way, since the firm can then raise capital), you are SELLING those shares to the public. In a PRIMARY listing, you can control, who buys what shares. But after that, shares can and will change hands FREELY. Talking of statutory instruments (SIs) to restrict how many shares can be owned by foreigners might defeat the purpose of listing, in this particular case. To be specific, do Zambian individuals have the capital and desire to recapitalize ZAFFICO and other firms to be sold? If not, it is inevitable that those shares will end up in the hands of foreigners or institutions (though institutions have no nationality, most viable ones in Zambia might be foreign owned). So the thing that GRZ (or PF) should be defending is not the listing/floatation of shares. GRZ/PF should explain how they intend to help the poor, common man in Zambia to BUY shares in ZAFFICO and other firms to be listed when these Zambians do not have money for the very basic things! Foreign ownership of shares should not be a big deal if government puts in place INCORRUPTIBLE ways to monitor and regulate these businesses (we have not done well with the mines). For me, it also reduces the risk that these companies will be staffed by ill-qualified cadres: foreign investors will ensure that the best managers (local or foreign) are running these institutions. My biggest worry is that given the scandals surrounding the MUKULA exports, this is not a government that will control or monitor corrupt foreign investors. It will just be SANGWAPO!!

    Mpundu
    November 13, 2018 at 7:49 pm
    Reply

  3. This government thinks all Zambians and economists are foolish. Floating of shares, an afterthought after the scheme had been busted is nothing but a sale, and corruptly. Employing these student economists to legitimate won’t wash.

    Kingdom Hall
    November 13, 2018 at 9:45 pm
    Reply

  4. In taxation, the list or floating of shares on the stock market is a disposal or sale for purpose of capital gains tax. I wish to advise this ignorant economist to go back to school and read tax.

    Alibaba
    November 13, 2018 at 11:08 pm
    Reply

  5. In taxation, the listing or floating of shares on the stock market is a disposal or sale for purpose of capital gains tax. I wish to advise this ignorant economist to go back to school and read tax.

    Alibaba
    November 13, 2018 at 11:09 pm
    Reply

  6. What economist is this? Just go and eat Dodia and stop vomiting trash.

    PRESIDENTIAL POWERS
    November 14, 2018 at 1:29 pm
    Reply

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