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Harare – Old Mutual Zimbabwe's empowerment shares on Zimbabwe's Alternative Trading Platform opened at 82 cents, with a total of 107 847 shares trading after listing on Thursday amid calls for other bigger foreign companies to list on the optional exchange.
The listing by Old Mutual of its B Class shares on Thursday is in line with the company's pursuit of compliance with indigenisation laws in Zimbabwe. The stock closed the first day of trading with a market capitalisation of about $68.1 million.
Old Mutual Zimbabwe is already listed on the Zimbabwe Stock Exchange, which has seen massive sell-offs by foreign investors, although its stock has remained resilient, trading at a premium of about $3 a share.
Other foreign companies in the country include South Africa platinum miners - Implats, Anglo Platinum and Sibanye Gold - as well as foreign banks in Nedbank, Barclays and Standard Bank.
"The ATP will help capital markets in Zimbabwe see new stock traders including first timers,” Tafadzwa Chinamo, chief executive officer of the Securities and Exchange Commission of Zimbabwe, said just before the shares traded.
"The first listing on the ATP is a direct result of OM response to indigenisation and empowerment of local citizens."
Zimbabwe's indigenisation laws require that foreign companies give majority shares into the hands of black groups such as employee an community share schemes among others.
The Zimbabwe unit of the diversified financial services company listed on the alternative trading platform by way of issuing about 83 million B Class shares. It has also advised shareholders yet to be paid their dividends from the Zimdollar era to pursue payment with its transfer secretaries.
Simon Hammond, the head of Central African Building Society (CABS) the banking division of Old Mutual Zimbabwe, has said the alternative listing could have been completed about two months ago. Investors have been wary over Zimbabwe's currency and liquidity constraints that have deterred fresh capital from international destinations.
"We had hoped to list some months back. The journey dates back to 2011 when we signed an agreement with Zimbabwe and when B Class shares were set aside to eligible participants.
"It was important for Old Mutual Zimbabwe that once indigenisation had happened the company remained indigenised. There are foreigners who are able to buy and sell shares on the ZSE (and these include foreign investors)," said Hammond.
Delta Corporation, Innscor and Econet Wireless are among the stocks in which foreign investors are mostly interested in on the ZSE because of their attractive fundamentals and proven resilience to Zimbabwe’s turbulent economy, say traders.
