malvernmugadzikwa
Business Writer
Powerspeed Electrical, currently trading on the over-the-counter (OTC) market through Fincent Securities, is aiming to enhance liquidity for its shares and provide investors with the opportunity to actively trade.
According to a valuation conducted by Fincent Advisory, Powerspeed shares are valued at a range of US 14.95 cents to US 23.69 cents.
The bid price for Powerspeed shares in the OTC market is US 15.00 cents, and the ask price is US 20.00 cents.
“There is a demand for 100 000 shares at the bid price and an offer of 100 000 shares at the ask price.
“Settlement for transactions in the OTC market will be conducted in United States dollars,” said Fincent.
It said the initial trade occurred for 350 000 shares at a price of 15.00 cents.
Powerspeed, which delisted from the Zimbabwe Stock Exchange (ZSE) in 2020, is a leading supplier of electrical, hardware, building and home improvement products and services, trading through its own chain of hardware retail outlets known as Electrosales Hardware.
The company supplies electrical products and solutions to the painting, plumbing, electrical, building, hand and power tools, outdoor and gardening, and automotive industries in Zimbabwe.
Post-delisting, Powerspeed shares have been available on an OTC market where there has been active trading.
According to Fincent, the OTC market operations for Powerspeed shares will be done once or twice a month, and transactions on the OTC market will be settled in United States dollars as the currency of choice.
Fincent said risks specific to the Zimbabwean market, such as exchange rate volatility, regulatory risk, OTC illiquidity, and high inflation, were considered during the valuation process.
As a result, an adjustment factor of 30 percent was applied by the valuation team to address these risks, resulting in a fair value range of US 14.95 cents to US 23.69 cents for Powerspeed shares.
Powerspeed has 21 branches countrywide with a total retail floor area of 18,669 m2.
The company’s product portfolio includes adhesives and sealants, lighting, agricultural, home and garden, automotive, solar, paint, plumbing, building, tools, electrical, gas equipment, electric motors and spares, security, ironmongery and fasteners, and personal protection.
Bongani Ndlovu