The Lusaka Stock Exchange (LuSE) offers a clear path for Zambian businesses that want to raise capital and build credibility. By taking your company public, you unlock long-term funding, visibility and liquidity while giving investors an efficient market for your shares. This guide explains, in plain language, how to list your business on LuSE under the rules in force as of April 2025.
Why Consider a LuSE Listing?
- Access to capital. A public offering lets you fund expansion without relying solely on bank loans.
- Enhanced profile. Listed companies enjoy greater media coverage and brand trust.
- Shareholder liquidity. An organised market makes it easier for existing owners to sell or pledge shares.
- Governance discipline. LuSE’s reporting rules foster better internal controls, which appeal to customers and partners.
Understanding LuSE’s Market Tiers
1. Main Board (Official List)
This top tier is for established companies that meet the full Listing Rules. Firms must show a three-year audited profit record, minimum share capital of K 500,000 and at least 25 % public free-float spread across 300 or more shareholders.
2. Quoted Tier
Companies that have 50 + shareholders but do not yet satisfy every Main Board test trade here. It is a stepping-stone that still delivers price discovery and regulatory oversight.
3. Alternative Market (Alt-M)
Launched in 2016, Alt-M targets small and medium-sized enterprises (SMEs). Entry thresholds are lighter:
- Minimum turnover K 250,000 (maximum K 20 million)
- Public free-float 10 %
- Five directors (majority non-family) who complete Institute of Directors training
- Demonstrated operations for five years or strong growth over three
Tip: If your firm is young but ambitious, start on Alt-M. You can graduate to the Main Board once you meet the higher ratios.
Pre-Listing Checklist
1. Corporate Structure
- Register as a public limited company with PACRA.
- Issue at least K 15,000 authorised share capital (statutory minimum).
- Appoint a company secretary and a minimum of two directors (half resident in Zambia).
2. Securities and Exchange Commission (SEC) Registration
Every public company must register its securities with the SEC. The regulator licenses brokers, approves prospectuses and safeguards investors. Submit:
- Form SEC-2 (application)
- Latest audited accounts
- Board and senior management résumés
- Draft prospectus or pre-listing statement
3. Governance and Records
LuSE scrutinises the competence and diversity of your board. Assemble:
- Three years’ audited financial statements with unqualified audit opinions
- Updated business plan covering at least the next two years
- Policies on insider trading, disclosure and risk management
Step-by-Step Listing Process
Step 1 – Engage a Sponsoring Broker
A LuSE-licensed broker (also called a sponsoring member) is your primary guide. They run due diligence, draft the prospectus and liaise with the exchange on your behalf.
Step 2 – Choose Your Offer Method
| Offer Type | When to Use |
| Offer for Sale | Existing owners sell part of their holdings to the public. No new shares issued. |
| Offer for Subscription | The company issues new shares, bringing fresh capital onto the balance sheet. |
If the offer is not underwritten, it must be conditional on raising the minimum subscription target. Underwriting adds certainty but comes at a fee.
Step 3 – Prepare the Prospectus
Your prospectus must comply with:
- Securities Act
- Companies Act
- LuSE Listing Rules
Key sections include:
- Business overview and competitive landscape
- Historical financial summary (at least three years)
- Use of proceeds
- Risk factors
- Independent auditor’s and, if relevant, valuer’s reports
- Directors’ declarations of responsibility
Step 4 – Submit the Application
Alongside the prospectus, file:
- Formal application letter
- Signed accountants’ reports and consent letters
- Underwriting agreements (if any)
- Proof of SEC registration
LuSE targets a 14-day turnaround once a complete file is lodged. In practice, questions from the Listings Committee often add another week, so plan for about a month.
Step 5 – Approval, Allotment and First Day of Trading
After LuSE approval, lodge the final prospectus with the Registrar of Companies and publish it in at least one widely circulated newspaper. Accept applications, allot shares, credit the Central Securities Depository (CSD) and ring the bell!
Ongoing Obligations After Listing
Being public is a marathon, not a sprint. Your company must:
- Publish audited financials within three months of year-end.
- File half-year interim statements within 60 days.
- Disclose price-sensitive information immediately — mergers, CEO changes, material litigation.
- Maintain at least 25 % public free-float (10 % on Alt-M).
- Comply with the LuSE Corporate Governance Code, which mandates independent directors, board committees and an annual governance statement.
Late filings trigger fines and potential suspension. In April 2025, four issuers, including ZCCM IH, were publicly rebuked for missing their audit deadline — a reminder that compliance matters.
Common Challenges (and How to Beat Them)
| Challenge | Practical Response |
| Stringent profit and capital tests | Build a three-year track record before applying, or list on Alt-M first. |
| Time-consuming documentation | Start assembling audits, tax returns and board CVs early. |
| Uncertain approval outcome | Run a mock compliance review with your broker to surface red flags. |
| Board expertise requirements | Recruit non-executive directors with capital-markets experience. |
Benefits That Outweigh the Effort
- Capital for growth at competitive cost
- Stronger governance, which can lower borrowing rates
- Public valuation, useful in negotiations or employee share schemes
- Exit route for founders or early investors
Final Thoughts
To list your business on the Lusaka Stock Exchange is to join an elite group of companies shaping Zambia’s economic future. Success hinges on early planning, honest self-assessment and steady collaboration with professional advisers. If your management team is committed to transparency and long-term value creation, LuSE can be a catalyst for the next stage of your journey.
