Locals to buy shares in JSE-listed Brainworks


Brainworks Limited is disposing its over 10 million Treasury shares, in a move which gives locals the chance to buy shares in the JSE-listed company.


The company, which debuted on the JSE on October 13, had bought the shares from Shingi Munyeza when he exited the Mauritius-based company in 2015.

In a notice yesterday, ABC Stockbrokers said Brainworks Capital Management (BCM) was the beneficial owner of
10 680 555 shares which are available for purchase. It said the transaction was being conducted as an off-exchange sale at a price of $0,90 per share. BCM is a unit of Brainworks Limited.

The brokerage firm said applications for shares have to be submitted by the close of business today, adding that Zimbabwean resident purchasers would require Reserve Bank of Zimbabwe (RBZ) approval to hold assets outside Zimbabwe. It said BCM would apply for such approval on behalf of successful purchasers.

Prospective purchasers are required to pay the 0,25% Securities Transfer Tax to the South African Revenue Service, with BCM prepared to assist Zimbabwean purchasers in facilitating payment of the tax.

Brainworks has a diversified Zimbabwean investment portfolio with a 57,7% interest in African Sun, 66,6% stake in real estate company, Dawn Properties, and 31,1% holding in Zimbabwe Stock Exchange listed microfinancier, Getbucks. It has 49% shareholding in mobile money transfer, GetCash and wholly-owns insurance firm, GetSure.

Brainworks had gross assets of $151 million in 2016.

ABC Stockbrokers said it was a big leverage to be listed on the JSE which, in a way, insulates the company from a wide deviation in valuations that usually stalk illiquid markets.

“This is a strong capability statement by the company in attaining this milestone given the onerous compliance checks at the JSE which comes with a “big boy club tag”. This is happening at a time when appetite for investment companies on the JSE is on a bullish trend and may underscore early pickings for investors through capital appreciation in the near term,” the firm said.

The brokerage company said the granting of exchange approval by RBZ would provide Zimbabwean investors with an opportunity to diversify portfolios into a highly liquid market.

“Faced with a runaway market in Zimbabwe, this opportunity may be a better option to start with, at its inception,” ABC Stockbrokers said.