SIMBISA Brands Limited debuted on the Zimbabwe Stock Exchange (ZSE) on Friday becoming the second Innscor Africa Limited unit to list on the bourse in five years.
BY BUSINESS REPORTER
In 2010, another Innscor unit Padenga listed on ZSE.
Simbisa debuted at $0,1432 per share and a total of 4 491 994 shares valued at $678 291 were traded.
Simbisa was unbundled from Innscor to unlock value for shareholders, enhance the ability of the Quick Service Restaurant (QSR) business to pursue strategies that maximise shareholder value and enable a clear operational focus that is attractive to investors.
The QSR business comprises of Chicken Inn, Creamy Inn, Pizza Inn, Bakers’ Inn, Fish Inn and Dial-a-Delivery. It also has third party licences for Galito’s, Steers (Zimbabwe only), Nando’s (Zimbabwe only) and Vida E Caffe (Mauritius).
The unbundling of the QSR business was approved at an extraordinary general meeting of Innscor shareholders on Monday paving way for its listing on the bourse.
The unbundling will be done through distribution of the entire issued share capital of 541 593 440 ordinary shares at a nominal value of $0,0001 of Simbisa to Innscor shareholders through a dividend in specie with a ratio of one ordinary share in Simbisa for every one existing Innscor ordinary share held.
Innscor said the unbundling was meant to establish investment flexibility, create financial independence and enhanced transparency for the company so it can report independently to its shareholders.
In the full year ended June 30, 2015, the regional QSR business posted a 7,18% growth in revenue and 29,73% improvement in profit before tax.
Innscor board chairperson, Addington Chinake said 55 outlets were added to the regional QSR in the financial year, including entry into a new market, Namibia.
In the period under review, total regional store network, including franchised counters, grew to 186 compared to 178 stores operated in Zimbabwe.