West Star’s listing plans on hold

since put the plan on hold as the economy is not performing. According to our plans now, we are considering the initiative for mid next year,” he said.
The group was supposed to list on the ZSE in October last year after acquiring Redstar Holdings from starafrica.
Early this year, West Star announced that it would list through an initial public offering.
Mr Sharpe said the group was carefully monitoring the economy after which they would make fresh moves.
“It is the economy that determines level of investment,” he said. At least US$200 000 had been earmarked for the listing process.
Meanwhile, West Star said it hoped to open three to four more wholesale branches before the end of the year and an additional 20 branches countrywide by the end of 2013.
The group had faced a number of challenges since entering the wholesale business, including pressure on margins, competition from traditional players and imports.
West Star resorted to list directly on the ZSE after failing to acquire Red Star Holdings Limited’s listing from its parent company, starafrica.
Mr Sharpe hinted it was the route West Star would pursue after it encountered complications in carrying on with the Red Star legacy and using the brand due to its troubled past.
The budding wholesale giant had initially appeared keen to perpetuate the Red Star brand after acquiring the group’s two wholesale business branches in Harare and Bulawayo.
After acquiring Red Star assets West Star initially traded as Red Star Wholesalers before a change of heart, which was followed by complete rebranding for a different identity.
But apart from wanting to start on a new footing and cultivate its own identity, consistent with the trademark for its other group operations, a reverse listing now unlikely. — New Ziana/Business Reporter