Brainworks Capital is working on a facility with the Reserve Bank of Zimbabwe, which will allow Zimbabwean investors to buy shares of the company when it lists on the Johannesburg Stock Exchange, without the need to source for foreign currency.
Brainworks, which is set to become the first Zimbabwean company to have a primary listing on the JSE next week has interests in hospitality, logistics, real estate and financial services. The institutional offering of 27 523 396 ordinary shares at an offer price of R11,50 per share opened last week Thursday and will close on Monday October 9. Results of the offer will be released on or about Wednesday October 11, 2017 while the company will list on Friday, October 13.
Brainworks chief executive Bretts Child said that talks were ongoing with the RBZ to give an opportunity to local investors to buy the company's shares on the JSE without having to source for elusive foreign currency.
"We expect this to be rolled out in the coming weeks. We believe it's important to give an opportunity to local investors to participate on the JSE.'
Mr Child said overall, after having gone on road shows in the United Kingdom and South Africa, there was interest and "huge empathy for Zimbabwe at the moment" adding that: "all we have to do is provide the right channel.
"A lot of investors will watch this JSE listing keenly and make their decision about investing in the country. There is interest, no doubt."
The listing and consequent capital raise of $25 million will support future strategic acquisitions, enable access to cheaper funding and provide investors with an opportunity to invest, and participate in, the future growth of Brainworks. Mr Child said the group will remain Zimbabwean focussed as there were still a lot of opportunities in the country.
"We want to be in front of the queue when the economy turns. The view is to become Zimbabwe's foremost hospitality player and build a sustainable and profitable property development business."
In the long-term, the group may consider expanding the current investment base by seeking potential acquisitions in the fast-moving consumer goods (FMCG) space. Mr Child said the business strategy is to build or selectively identify and acquire control of strategic equity stakes in attractive companies active in growth sectors with proven business models primarily operating in Zimbabwe.
"The businesses are required to demonstrate strong potential to generate cash, attain sustainable profitability and possess strong brands in order to attract reputable international operating partners who will invest alongside or partner with Brainworks to facilitate the unlocking of shareholder value and enhance profitability."
Recently, Brainworks was recognised by the London Stock Exchange Group (LSEG) as one of the "Companies to Inspire Africa". Brainworks' profile was featured alongside other growing, outstanding companies from Africa as part of the LSEG's Companies to Inspire Africa publication. Brainworks has consolidated gross assets in excess of $151 million and a total net asset value of $87 million as at December 31, 2016. For the year ended December 31, 2016, the Group reported total revenue of $48 million and a normalised EBITDA of $7,3 million.