Financial Gazette (Harare)
Synodia Bhasera
17 August 2007
Harare — PEARL Properties Limited's Initial Public Offer (IPO) closed last Friday amid indications that a large portion of the shares had been taken up by foreign fund managers.
Stockbrokers revealed to The Property Gazette this week that there has been interest in the IPO from
foreign investors despite reports of a crumbling Zimbabwean economy worsened by the on-going government blitz on prices.
"While we await results of the IPO, which will be out anytime soon, indications are that there was heavy foreign participation, which is a vote of confidence in both Pearl and the property market in Zimbabwe," said a local stockbroker.
The IPO opened on July 23. Pearl is expected to make its debut on the Zimbabwe Stock Exchange (ZSE) on Wednesday next week.
A subsidiary of First Mutual Limited (FML), Pearl Properties was on the market for over two weeks to raise $1 trillion.
The company was offering 238 157 310 ordinary shares with a nominal
value of $0,05 each at a subscription rate of $4 200 per share.
Analysts said Pearl IPO
is likely to be under-subscribed because of the $4.200 share price, which they said was quite prohibitive.
Of the $1 trillion, $619 billion will go towards developments in the retail sector; $309,5 billion is earmarked for the development of residential properties while the remainder will cater for the expenses of the offer.
The company has a valuable property portfolio with a lettable floor area of 117 000 square metres with 81 percent of the space in Harare and 402,433 square metres of undeveloped land.
Pearl Properties is 96 percent owned by FML and its subsidiaries. The company was incorporated as Jaylowe Investments Limited in March 2003.
In October 2003, the name was changed to First Mutual Properties and later changed to Pearl Properties Limited in August 2006.
Pearl Properties will become the fourth property counter to list on the ZSE after Dawn Properties, Mashonaland Holdings and recently listed ZPI.
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