HomeNewsFirms urged to go for secondary list on ZSE

Firms urged to go for secondary list on ZSE

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IMARA Capital Zimbabwe managing director Sean Gammon yesterday said mining companies should consider secondary listings on the Zimbabwe Stock Exchange (ZSE) in a bid to boost capital on the local market as well as provide more investment options on the local bourse.

Report by Victoria Mtomba

Speaking on the sidelines of an Imara investment annual conference in the capital, Gammon said this year’s meeting was aimed at ways of improving foreign investor participation on the ZSE.

Secondary listing is the issuance for public sale from a company that has already made its initial public offering.

The ZSE currently has four listed mining companies that include Bindura Nickel Corporation, Falgold, Hwange and RioZim despite the country having many mining companies. Major mining companies such as platinum Zimplats, Mimosa, Unki, which have in recent years relinquished their stakes to locals in compliance with indigenisation and empowerment regulations, all have primary listings offshore.

The mining index has been averaging 73 points since 2009 when the country introduced the multicurrency system.

Most mining companies are listed on foreign stock exchanges that include the London Stock exchange and the Toronto Stock Exchange due to the capital-intensive requirements of the mining sector.

“The mining sector is not properly represented on the market. A number of companies should come for secondary listing. The issue is there is no large amounts of capital in Zimbabwe. Secondary listing is something that we want to see,” Gammon said.

He said the ZSE was one of the best performing markets in the African region and there has been so much interest in the region compared to Western markets. He cited Delta which had since 2009 doubled its share price compared to its regional peers. Gammon said mining was expected to be a big driver in economic growth yet it’s not well represented.
“The secondary listings will provide investors with more options for investments horizons and more capital,” he said.

The conference was attended by various captains of industry that include AfrAsia Kingdom Holdings Limited founder Nigel Chanakira, Nicoz Diamond managing director Grace Muradzikwa, New Dawn Mining managing director Ian Saunders, NMBZ group chief executive James Mushore, Bindura Nickel Corporation managing director David Murangari as well as foreign investors.

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