Benefits of a Private Market to enterprises

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Business and Marketing concept on metallic gearwheel

The Financial Securities Exchange is registered by the Securities and Exchange Commission of Zimbabwe as a Securities Exchange, (Alternative Trading Platform) under Section 30 of the Securities Exchange Act [Chapter 24:25] as read with the Securities (ATP) Rules S.1.100 of 2016. An ATP is a system that provides and maintains a marketplace or facilities for bringing together buyers and sellers of securities but does not set rules for participants or discipline or seek to control them other than by excluding them from trading. FINSEC eases the process of mobilisation of capital for medium and long-term investments focusing on wider participation in the capital markets coupled with the requisite technology for wider reach.

The vision behind FINSEC is to foster participation by Zimbabweans in a widely diversified capital market thus, FINSEC eases the process of mobilisation of capital for medium and long-term investments focusing on wider participation in the capital markets coupled with the requisite technology for wider reach. FINSEC is also working towards providing a wide array of products that have hitherto not been obtainable in Zimbabwe but can be lucrative.

The GEM Portal is a dedicated online Portal designed for enterprises in need of raising capital for retooling operations, increase productivity, or to increase their product range and or to expand into diversified markets.  Prospective enterprises complete an online application for raising capital through either equity listing on the FINSEC Exchange or through debt financing by investors.

Investors have access to a directory of investment grade SMEs that have undergone reassessment on the GEM Portal.  They will be able to choose SMEs to invest in based on their internal investment criterion thereby saving time from considering tonnes of applications. Having the investee company listed and trading on an exchange exposes the holders of the listed securities/ instruments to an efficient price discovery mechanism to determine a market price of their investment based on market fundamentals.

 Prospective enterprises have the capability to apply for capital raising privately and a comprehensive scoring and rating of each input by the applicant. This helps the applicant to know how well they are doing and the prospects of their application and exposure to lenders or other providers of capital. Through the GEM portal, start-ups qualify for short term to long term debt financing instruments this include; loans, Factoring Services, Order financing, Invoice Discounting, commercial paper, medium term notes, Corporate Bonds among other instruments. The portal brings investors of various types of qualified investors and firms have the liberty to raise funds via private equity or publicly through listing on FINSEC stock Exchange.

The FINSEC private markets offers mentorship and support to sustain firms that are not well organized to receive capital. All applicants can experience a quick turnaround solution to their quest for financing.

  • FINSEC is a local company and a member of the Escrow group which has interests in financial and technology solutions. Corpserve Registrars and Escrow Systems are also part of the group. For more information contact: 2nd Floor ZB Centre, Cnr. Kwame Nkrumah & 1st Street, Harare, Zimbabwe; Tel: +263 242 758 193, E-mail: info@finsec.co.zw; www.finsec.co.zw; Twitter: @FINSECZim