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Business Reporter
Property developer, WestProp Holdings, today listed its shares on the Victoria Falls Stock Exchange (VFEX), becoming the first real estate firm to trade on the US dollar-denominated bourse.
WestProp Holdings became the 12th company to list on the VFEX, but the first to do so by way of an Initial Public Offering (IPO).
The company’s shares will start trading on the bourse on Monday, as it lists US$300 million from its 30 million shares offered at US$10 each under the IPO.
WestProp chief executive officer, Mr Kenneth Sharpe said despite the putting aside of the offer of preference shares being US$30 million required for additional real estate development, they had only raised US$3,3 million which was a first step into realising their goal.
“The preference shares was set to raise $30 million in capital to accelerate the development of the company’s existing projects such as the The Mall of Zimbabwe, Millennium Heights Office Park and the Hills Golf Estate.
“Let’s not despise humble beginnings and the raised US$3,3 million because we will be coming back to the market with a fresh round of preference shares,” he said.
He said, the listing was in line with the company’s 2050 vision of one billion bricks resulting in the creation of thousands of jobs and properties valued at US$5 billion.
Mr Sharpe added the company has a committed 57 million bricks in existing projects which is 6% of the 1 billion bricks vision.
“We are going to go ahead with the projects, including the Mall of Zimbabwe and Warren Hills which are targeted to start at the end of the year and after the second preference shares offer, respectively,” Mr Sharpe said.
The company is currently working on its Millenium Heights Block 3, which is 30 percent done, with a pace of one floor per 2 months it will be completed by end of year. Block 4 is already being sold with Block 5 going on sale later in the year.
In Pomona, WestProp has 150 serviced stands with 550 stands currently being serviced by the end of the year.
WestProp Holdings board chairman, Dr Micheal Louis applauded the listing on the VFEX and said it meant the company is now part of the bigger part of the country and no longer a family business.
“Today underlines the story of how much unfinished business we have in Zimbabwe with continued hunger, unemployment and economic emancipation. This should no longer be the case after 30 years of isolation,” he said.
“As we have now gone public, the board is convinced the time is now for individuals to be part of a bigger family to start investing in their long-term future and especially encourage the youth to start participating.”
He said WestProp Holdings believes that the country owes something more to its people and it will be part of the journey.
“Today is about listing a grand vision and economic framework in line with the National Development Strategy to achieve and empower a significant upper middle-income society by 2030 and to chart a new transformative and inclusive development agenda, with no one left behind.
“To sketch the African landscape of our potential as a continent and country, we know Zimbabwe is part of the African Continental Free Trade Area (AFCTA),” Dr Louis added.
The AfCFTA is the largest free trade area in the world with 54 out of 55 countries that signed the agreement. It consists of 1,3 billion people across 55 countries. The free trade area has a combined gross domestic product (GDP) $3,4 trillion and has the potential to lift 50 million people out of poverty.
AfCFTA is expected to boost African income by US$450 billion by 2035, a gain of 7 percent.
“Our only option and mandate as a country to make use of this incredible timeous opportunity is if private business collaborate and partners with the Government, there is no other way,” Dr Louis said.
He also applauded the Government for creating a conducive environment to stimulate economic growth and infrastructure development.
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