24 June 2007

Zimbabwe: FDH Board Okays Listing Plan

FIRST Discount House (FDH) is on course for listing on the Malawi Stock Exchange after the firm's board agreed to the capital raising initiative in preparation for joining the bourse in August.

FDH will next month unveil an Initial Public Offering (IPO) to raise US$1.8 million to finance the setting up of a merchant bank. The merchant bank will commence operation after being issued with a licence from the Re serve Bank of Malawi.

The IPO will result in the slashing of shareholding by the discount house's three shareholders -- Kingdom Financial Holdings (KFHL), TF Mpinganjira Trust and Old Mutual. KFHL, with 40.16% will remain with 28.11%; TF Mpinganjira Trust will see its shareholding reduced to 27.89% from the initial 39.84%; Old Mutual will remain with 14% from the original 20% and the remainder-- 30% -- will be offered to the public.

Thomson Mpinganjira, FDH MD told Standardbusiness last week that the board, at its 12 June meeting, had approved the listing of the discount house in August.

"Approval was given by the Board to proceed," Mpinganjira said adding that the IPO will run from run from 9 July to 3 August with listing slated for 13 August "all things being equal".

Mpinganjira said FDH was now waiting provisional listing approval to proceed with listing from Malawi Stock Exchange having submitted all required documentation including Prospectus last week.

"RBM (Reserve Bank of Malawi) clearance or approval for FDH to apply for listing was the first regulatory clearance sought before the MSE were approached to book dates and pay deposit," the FDH boss said.

All work by listing advisors was completed and prospectus delivered to the RBM. Once provisional listing approval is granted a copy of the approved Prospectus will be passed to KFHL for onward transmission to the Reserve Bank of Zimbabwe.

Final approval only comes after the offer closes and all requirements satisfied, Standardbusiness was told.

Nigel Chanakira, KFHL group CEO said: "With regard to the transaction you ask about, we await final approval from Reserve Bank of Zimbabwe as well as approval for the prospectus."

Chanakira chairs the FDH board.

FDH started operations in 2002 and controls 50% of the market share ahead of its nine-year-old competitor, Continental Discount House.

Ads by Google

Copyright © 2007 Zimbabwe Standard. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.