adminLast year, the ZSE failed to record any listings due to liquidity constraints despite calls for large unquoted firms to go for initial public offerings.
Analysts said there is likely to be activity on the exchange in terms of listings as companies seek to raise capital, which is now a more lucrative option than in the pre-dollarisation era.
Interfin Securities said activity would be spurred by spin-offs from conglomerates holding several unrelated businesses and from the much-anticipated privatisation of some State-owned entities and foreign-owned businesses seeking to comply with indigenisation regulations.
“We also expect possible entry of regional or international groups acquiring existing business or setting up new shops,” said Interfin in a report.
Finance Minister Tendai Biti in 2009 indicated that at least four public enterprises were expected to list on the ZSE but that is yet to happen.
It last popped the champagne in 2010 when Padenga Holdings unbundled from Innscor Africa.
During the same year, investment company LonZim and mining company Whetstone had hinted at the possibility of listing on the ZSE but this did not materialise.
Padenga is the only company that listed by way of introduction since the multiple currency system in February 2009 while two others listed through a reverse listing. TN Financial Holdings Limited listed through a reverse takeover of Tedco Holdings while Interfin Financial Services was admitted on the bourse through CFX Financial Services.
Foreign companies operating in the country were also expected to list on the ZSE as a way of meeting indigenisation requirements as Government has been encouraging more mining firms to list.
Currently, the ZSE resources index has four counters – some are listed outside Zimbabwe while others are not listed. Empowerment laws require foreign firms to extend 51 percent shareholding to local
Zimbabweans and a number of foreign firms had opted for IPOs to meet the requirements.
Kingdom Financial Holdings Limited was also expected to relist last year after completing its demerger from Meikles Limited.
Kingdom is seeking dual listing on the ZSE and possibly the Johannesburg Stock Exchange.
Online Reporter