17 January 2016

Zimbabwe: Little Interest in Zim's First IPO in 10 Years

The Zimbabwe Stock Exchange (ZSE) received its first initial public offering in about 10 years with the listing of financial services firm GetBucks Zimbabwe on Friday.

GetBucks Zimbabwe, which becomes the 59th listing on the ZSE, is owned 55% by GetBucks Limited, a company registered in Mauritius with operations in eight African countries - South Africa, Zimbabwe, Zambia, Kenya, Namibia, Botswana, Malawi and Swaziland - and two European countries, Poland and Spain.

GetBucks Zimbabwe commenced operations in 2012 as a credit-only microfinance institution. It has since grown into one of the leading microfinance lenders in Zimbabwe, with a loan book of $11 600 480 as at June 30 2015.

The Reserve Bank of Zimbabwe recently licensed and authorised the company to conduct deposit-taking microfinance business with effect from January 6 2016.

One of the firm's main reasons for listing on the ZSE is to raise a total amount of $3.2m, mainly for working capital purposes.

Bad timing played a role

The IPO, however, had one of the lowest subscription rates ever of 2.29%, with analysts saying the timing of the offering played a major role.

The IPO comes at a time when local retail and institutional investors have not seen much activity on the local stock market.

In 2015, at least 56% of the turnover was from foreign buyers.

The IPO, which opened late in December, also coincided with the festive season holidays - a quiet period for investors.

Only $5.8m worth of shares have been traded on the ZSE since the beginning of the year.

Source: Fin24

Zimbabwe

Opposition Thugs Unleash Terror, Loot Shops - State Media

Opposition parties' thugs under the banner National Electoral Reform Agenda (NERA) unleashed an orgy of violence in… Read more »

Copyright © 2016 News24Wire. 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 1,000 reports a day from more than 140 news organizations and over 500 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.