VFEX listing: WestProp shows confidence in Zim

Elliot Ziwira

Senior Writer

Following its recent transformation from a private company to a public firm, property developer, WestProp Holdings Limited, will formally list on the Victoria Falls Stock Exchange (VFEX) next month in line with the National Development Strategy 1 aimed at collectively attaining an empowered upper-middle income society by 2030.

Established over two years ago, the VFEX, which is a United States dollar-indexed bourse, is a subsidiary of the Zimbabwe Stock Exchange (ZSE). The bourse’s major attractions are zero capital gains tax on share disposal and comparatively lesser transacting cost, among other inducements.

Speaking at a Press briefing in Harare yesterday, WestProp Holdings chairman, Dr Michael Louis, said having met statutory and regulatory approvals early this month, the company has been given the green light to list two categories of its share capital, which are ordinary shares and preference shares on the VFEX on April 29.

Inspired to redefine modernity and equitably open up new “horizons of opportunities” for all Zimbabweans, beginning yesterday until April 21, WestProp, formerly West Property (Pvt) Ltd, shall be offering these securities for public subscription through an initial public offering (IPO).

Through the IPO, the real estate developer anticipates raising US$30 million capital to accelerate the development of existing projects, including Pokugara Residential Estate, Millennium Heights, Pomona City, The Mall of Zimbabwe, Millennium Heights Office Park and the Hills Golf Estate. This dovetails with the firm’s 2050 vision of putting a billion bricks into the ground in a project value of over
US$5 billion, thus creating thousands of jobs.”We are further elated to announce that we have decided to list on the Victoria Falls Stock Exchange because of the numerous benefits it holds for its shareholders, including, but not limited to the stability of the shares traded in US dollars, no capital gains tax and minimum transaction costs,” said Dr Louis.

The IPO offers 1 million ordinary shares at US$10 each and 5,4 million preferential redeemable convertible shares at US$5 each. The preferential shares give investors up to five years to decide to become ordinary shareholders during which time they will benefit from a minimum guaranteed return of 7,5 percent annually, and dividends from the company’s profits.

The company’s chief executive officer and award-winning property mogul, Mr Ken Sharpe, said through the “defining historic moment” and “pinnacle” of their history, they have perused into the future. He encouraged citizens of Zimbabwe, pension funds and investors to invest in the company’s shares and become a part of “the journey of a billion bricks”.

Mr Sharpe added that the billion bricks concept, developed over four years, would see the company penetrate new markets and offer new products, such as the Mall of Zimbabwe, the Hills Golf Estate and Pomona City, this year.

“By 2050, we will pioneer world class, vertically integrated, premium lifestyle communities in Zimbabwe. Using technology and innovation, we operate in a high performance culture of excellence delivering a trusted customer-centric ecosystem to live, work, shop and play,” he said.

The property tycoon pointed out that limited resources notwithstanding, the company made great strides in the past few years having laid 5 298 975 bricks as of Monday last week, and committed 55 626 972 more from existing sales.

Mr Sharpe encouraged Zimbabweans to take up the opportunity to be part of the journey to build the country, and at the same time ensure an inheritance for their spouses and offspring through homeownership.

“Over five years, the value of shares is likely to also go up. We have a goal of taking our company from the current annual sales of US$40 million to over US$100 million within seven years, and to create a balance sheet that will exceed US$1 billion in value, which is more than five times the one today.

“All the shareholders will benefit from this growth. We know it is achievable and within our grasp,” he said.