THE Zimbabwe Stock Exchange (ZSE) board has given the bourse the green light to contribute to a revolving fund meant to assist companies list on its junior market, the exchange has said.
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ZSE wants to set up a bourse to cater for small to medium enterprises (SMEs).
Listing requirements for the alternative bourse, the Zimbabwe Emerging Enterprise Market (ZEEM), have been drafted and will be forwarded to the Securities and Exchange Commission of Zimbabwe (SECZ) for approval.
Alban Chirume, ZSE chief executive officer, said on Wednesday the revolving fund is meant to assist SMEs list on ZEEM and they were engaging stakeholders to contribute to the fund.
“Following the stakeholder engagement efforts, it is ZSE view that the exchange should lead by example in order to attract donors to the ZEEM Revolving Fund and inspire confidence and demonstrate good will,” Chirume said.
“The ZSE board has approved the ZSE to contribute towards the revolving fund.”
He said the launch of ZEEM was expected in the third quarter of 2015.
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Chirume said there was interest in ZEEM from potential issuers, banks, institutional investors (both local and foreign) and professional advisors.
The minimum equity for the SME bourse has been pegged at $250 000 while the minimum public shareholders will be 50. The minimum number of shares to be issued will constitute 26%.
Listing expenses that the SMEs will have to incur include sponsoring brokers’ fee, fees for accountants, lawyers, underwriters, SECZ and ZSE among others.
The Zimbabwean economy has been transformed into an informal one, accounting for 75% of business. Estimates say at least $4 billion was circulating in the informal sector.
The transition to an informal economy has made it difficult for the Zimbabwe Revenue Authority to tax the sector depriving the economy of revenue.
