THE Victoria Falls Stock Exchange (VFEX) is achieving significant milestones in line with the thrust of ensuring capital markets play their role in capital raising and economic revival.
And to put icing on the US dollar market’s capital cake, this month – two big companies – West Properties (WestProp) and African Sun Limited (ASL) are set to list on the bourse bringing the number of listed firms on the VFEX to 12.
ASL plans to list on the 14th with WestProp joining on the 28th. This will enable the companies to raise capital while strengthening their structure, reputation and providing liquidity to investors.
The listing will provide the companies with access to a broader pool of investors, enabling them to raise capital for strategic growth initiatives and expand its market share.
Furthermore, listing on the VFEX will provide organisations with increased visibility and credibility, enhancing their brand and opening up opportunities for strategic partnerships and collaborations in a stable currency.
In a high inflation environment, property is widely regarded as the safest investment and West Props’ planned listing shows their commitment towards enhancing their growth prospects and increasing investor confidence in the company.
WestProp is a leading player in Zimbabwe’s property development landscape, with a portfolio spanning across residential, commercial and industrial properties.
According to West Properties, the IPO is to raise capital to accelerate the development of ongoing projects that include Pokugara Residential Estate, Millennium Heights, Pomona City, The Mall of Zimbabwe, Millennium Heights Office Park, and the Warren Hills Golf Estate.
The company has established a strong reputation for delivering high-quality properties that meet the diverse needs of its clients.
During a press conference to announce their listing, WestProp chief executive officer Ken Sharpe said the preferential shares allow investors a period of 5 years before they decide to become ordinary shareholders, a period during which they will benefit from a minimum guaranteed return of 7,5 percent per year as well as dividends from the company’s profits.
The company intends to issue up to 5,4 million convertible redeemable participating preference shares at a price of US$5 each, representing an aggregate amount of up to US$27 million.
It intends to issue up to 1 million ordinary shares at a price of US$10 each, representing an aggregate amount of up to US$10 million bringing the cumulative amount to US$37 million.
The minimum subscription of shares has been pegged at US$50 (10 shares) for preference shares at US$5 each, while ordinary shares at US$100 (10 shares) at US$10 each.
Hospitality group, ASL which will become the first tourism player to list on the VFEX and is confident that trading on the United States dollar denominated bourse will enhance access to equity and debt capital. ASL was previously listed on the Zimbabwe Stock Exchange.
With an unparalleled portfolio of hotels in terms of variety, location and size, ASL becomes the 11th listing since establishment of the VFEX in 2020 with West Prop becoming the 12th.
ASL has five business divisions namely City and Country Hotels, Resort Hotels namely Victoria Falls Hotel (operated in partnership with Meikles Hospitality (Private) Limited), Sun Leisure and Real estate.
Among them are Elephant Hills Resort and Conference Centre, Caribbea Bay Resort (Kaiba), Great Zimbabwe Hotel, Hwange Safari Lodge, Holiday Inn Harare, Holiday Inn Bulawayo, Holiday Inn Mutare, Troutbeck Resort and Monomotapa Hotel, to become one of Southern Africa’s largest hotel chains.
The migration of a number of companies from the Zimbabwe Stock Exchange (ZSE) to the US dollar-denominated VFEX is expected to continue and result in some key changes on the main exchange.
Last month, industrial conglomerate Innscor Africa Limited migrated to the VFEX, trailing the likes of National Foods and Simbisa Brands, which switched to the new bourse last year.