Finance Bank Zambia Plans $250 Million IPO in Lusaka

Finance Bank Zambia Ltd., which is 40 percent owned by Credit Suisse Group AG, plans to raise $250 million selling stock on the Lusaka Stock Exchange in October, Chairman Rajan Mahtani said.

The funds will be used to expand to benefit from banking industry growth of more than 30 percent a year, he said in an e-mailed response to questions today. The initial public offering will be followed by an international listing in 2014, Mahtani said in a copy of a speech dated April 23. Finance Bank will list shares in Johannesburg and London, the Lusaka-based Daily Mail said, citing Mahtani.

“Raising $250 million on the local market would be pretty tricky,” Chenge Besa, an analyst at Stockbrokers Zambia Ltd., said by phone from Lusaka. “Is it feasible on the local market? Probably not.”

Zambian lenders are benefiting from an economy that grew 7.3 percent last year, according to the central bank. Only 37 percent of the so-called bankable population have accounts, Zambia National Commercial Bank Plc said April 9. Standard Chartered Plc, Standard Bank Group Ltd., and FirstRand Ltd. have operations in the country. President Michael Sata canceled the sale of Finance Bank to Johannesburg-based FirstRand a month after coming into power in September 2011.

Finance Bank made 51 million kwacha ($9.5 million) in after-tax profit in 2012, Mahtani said.

(Corrects story to remove Credit Suisse from headline. Story was originally published on April 25.)
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