Tawanda Musarurwa
THE Zimbabwe Stock Exchange (ZSE) Group says about 70 percent of the 30 companies currently in discussions with its new platform want to list publicly, signalling appetite among businesses to access equity financing through the capital markets.
Speaking at the Supply Chain Finance Forum in Harare this morning, ZSE Group chief executive Dr Justin Bgoni said the platform offers companies two routes to raise capital: private markets, where businesses can attract investors without listing, and public markets, which allow them to raise funds through a public listing.
Under the private-market option, companies submit their documentation for assessment by potential investors, who can then invest in exchange for an ownership stake without the business having to list publicly.
Dr Bgoni said the group had initially expected most companies to favour private capital-raising because of the demands associated with listing.
“About 70 percent of them actually want to come and list,” he said, referring to the approximately 30 companies currently engaging the platform to raise equity capital.
The response has surprised the group, which had anticipated stronger demand for private fundraising as businesses sought to avoid the obligations associated with public listing.
Instead, Dr Bgoni said entrepreneurs continued to view listing as a significant business milestone.
“If you’re an entrepreneur, being listed is probably the culmination of your dreams,” he said.
The platform’s dual-market structure is intended to broaden companies’ access to capital by accommodating businesses seeking private investment as well as those ready to enter the public market.
