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The Zambian government last week officially launched the sell-down of its stake in its mining investment company to the public. The government owns a 77 percent stake in ZCCM-IH Mines Investment Holding but this will reduce to 60 percent following the opening of the IPO.

The move, which the Zambians described as historic, is being done mainly to set an example to other investors that it can follow the rules set by the Lusaka Stock Exchange that requires all listed companies to have a minimum free float of 25 percent.

The government previously held 87 percent in the group but sold 10 percent to Zambia’s National Pension Scheme Authority. ZCCM-IH holds minority stakes in the local units of companies including First Quantum Minerals Ltd., Glencore Plc and Vedanta Resources Plc.

The company is the successor to Zambia Consolidated Copper Mines, which held the government’s stakes in the country’s copper operations after they were nationalised.

Chief executive Pius Kasolo said that roadshows will be held to promote the offer which will run for two months. He said they would also use government distribution centres, like post offices, where its citizens can go and get shareholder application forms.

“This is an opportunity to own a part of history and doorway to the future. ZCCM-IH is a strong company with a market cap of over $1 billion and paid out the largest dividend of $40 million in 2014.

“We have assets, copper assets, which are one of the best in the world and exploration hasn’t even been completed.”

The offer opened on July 31 and runs till October 2. Results will be published on October 16.

LuSE chief executive Brian Tembo said that the sell-down enables compliance with the 25 percent public float.

“This requirement is not a figure that LuSE thumb sucked or dreamt of. In 2012, the SADC Stock Exchanges (Cosse) agreed that we benchmark our rules to the Johannesburg Stock Exchange and those rules include the 25 percent public float requirement”

The Zambian government believes the sell-down is part of entrenching economic independence of Zambians. ZCCM-IH’s mandate is nearer to ZMDC while Zimbabwe is also trying to create a Consolidation Diamond Company by merging the operations of the Marange diamond mines. – Wires.