ZSE expects more listings

ZSE expects more listings
Published: 30 April 2019
The Zimbabwe Stock Exchange (ZSE) projects strong capital growth through initial public offering (IPO) listings next year, with revelations that the government intends to encourage state-owned enterprises to list on the local bourse.

This comes as the government economic reform processes are expected to improve liquidity and provide investment opportunities for foreign and domestic investors.

Zimbabwe Stock Exchange (ZSE) CEO, Mr Justin Bogni noted that at least three government entities will soon be ready for listing, while they are also prodding other private investors to effectively participate on the local equities market.

He was speaking on the sidelines of the IPO master class meeting convened in Harare this Monday.

"We are looking at the government coming on board and listing. We are looking at organisations such as POSB, which we think is ready to come on board. Companies like TelOne and NetOne should also be ready to come on the market. So we are actually very optimistic over the next year or so for companies to come on the stock market. We are talking to other companies that are also keen to come and participate on the stock market," he said.

The IPO represents the first time a company sells shares to the public, opening up the business from private ownership, and empowering new investors with the right to vote on future decisions.

The ZSE intends to roll out a massive campaign to rope in firms and stimulate them towards listing.

Few companies in Zimbabwe want to float, either because the majority of firms, see no benefit of opening up their books or a gap in awareness to encourage them.

This is a trend visible on the equities market which recorded two listings within the last three years, the latest being an IPO by Cassava Smartech.The Principal Director in the Ministry of Finance and Economic Development, Mr Taguma Mahonde said economic reforms are expected to spur investments, listings and activity of the ZSE.

"We have just come from the Springs meetings where the IMF agreed to put us on a staff monitored programme (SMP) and that is a huge  positive signal to the market which  Zimbabwe should ride on," he said.

In order to make the ZSE more effective, a draft of new listing guidelines has been prepared and now awaits gazetting.

The proposed new document will look at issues of disclosure entailing fines for firms that do not follow rules, and censure for the directors, according to the ZSE head.
- zbc
Tags: ZSE,


Latest News

Latest Published Reports

Latest jobs