Harare - The Zimbabwe Stock Exchange is now open to private placement following the signing of a memorandum of understanding, which will pave way for demutualisation of the exchange.
Zimbabwe’s Finance Minister Patrick Chinamasa and stockbrokers, who own proprietary rights, on Monday signed the MoU which will allow private investors to buy 20% of the exchange worth US$2m.
Under the demutualisation structure, stockbrokers will hold 34% of the exchange post demutualisation from the current 68%, while government will hold 16% from the pre-demutualisation stake of 32%.
The remaining 50% will be open to private investors, where 20% will go for a private placement to raise $2m and 30% will be floated through an IPO for members of the public to raise $3m. This will bring the total capital for the ZSE to $10m after an initial valuation of $5m.
Chinamasa said government for its part will create enabling legislation for the ZSE to be a company and repeal the current legislation which deems it a statutory body.
"This will pave way for the listing of the exchange," he said.
- Fin24
Zimbabwe’s Finance Minister Patrick Chinamasa and stockbrokers, who own proprietary rights, on Monday signed the MoU which will allow private investors to buy 20% of the exchange worth US$2m.
Under the demutualisation structure, stockbrokers will hold 34% of the exchange post demutualisation from the current 68%, while government will hold 16% from the pre-demutualisation stake of 32%.
The remaining 50% will be open to private investors, where 20% will go for a private placement to raise $2m and 30% will be floated through an IPO for members of the public to raise $3m. This will bring the total capital for the ZSE to $10m after an initial valuation of $5m.
Chinamasa said government for its part will create enabling legislation for the ZSE to be a company and repeal the current legislation which deems it a statutory body.
"This will pave way for the listing of the exchange," he said.
- Fin24