Zimbabwe investment group, Brainworks Capital on Monday said it has been granted a listing of all its issued shares on the Johannesburg Stock Exchange (JSE), a move which it said will enable the company to raise capital to reduce its debt and enhance its acquisitive growth.
The Mauritius-registered Brainworks has a diversified portfolio of assets in the micro financing, insurance, mobile payments, real estate and hospitality sectors.
In a pre listing statement on Monday, the company said it is offering investors to buy and subscribe its shares at R11,50 per share.
"Brainworks has been granted a listing of all its issued shares in the "Equity Investment Instruments" sector of the main board of the Johannesburg Stock Exchange (JSE), with effect from the commencement of trade on 13 October 2017 and has extended an offer to qualifying investors to purchase up to 10,680,555 ordinary shares and subscribe for 16,843,396 ordinary shares in the company at R11.50 per offer share," the company said in a pre listing statement.
Earlier, in June this year, the company said it would undertake an Initial Public Offer (IPO) that seeks to raise about $25 million.
The group intends to use the proceeds of the offer to settle its debt and boost the financial performance of its investee assets.
"The proceeds of the offer will be used by Brainworks to settle interest bearing debt, which will strengthen the group's balance sheet and position it for growth, and will be invested in its current investee assets to enhance future revenue generation and profitability, as well as payment of listing expenses," said Brainworks.
Additionally, the company said the rationale of the listing is to get access to funding from South African equity capital markets in order to facilitate and accelerate the group's organic and acquisitive growth.
Brainworks reported a total revenue of $48,1 million and a profit before tax of $4,4 million in 2016.
The group's total assets stood at $157,5 million as at December 31,2016.
The group holds a 57.7 percent interest in African Sun, a hotel investment and management company listed on the Zimbabwe Stock Exchange (ZSE) and 66,8 percent in Dawn Properties.
It also holds a 31,1 percent in listed deposit taking microfinancier, Getbucks and is behind the Getcash mobile money transfer platform.