ZSE record first listing in 5 years

ZSE record first listing in 5 years

Out of 67 counters listed on the ZSE, only 15 counters are currently trading positively and the rest are in the red.

LISTED manufacturing and construction Masimba Holdings on Monday separately listed its plastics manufacturing subsidiary, Proplastics, on the Zimbabwe Stock Exchange (ZSE), , though a dividend-in-specie.
The move follows a successful restructuring exercise that resulted in the group unbundling the plastics manufacturing subsidiary, from the construction business.
The counter listed at 3c and 60 000 shares.
The listing is the second on the ZSE in five years after that of Padenga Holdings which also listed through a dividend-in-specie following its unbundling from Innscor Africa in 2010.
he unbundling is designed to make it easy for the two entities to attract capital and to strategically position themselves in line with their core business.
This apparently would unlock shareholder value and give Proplastics the latitude to pursue its business independent of interference from Masimba.
Today’s could help grow the ZSE, which is experiencing declining investor interest and trading volumes. Currently, there are 62 counters that are listed on the local bourse.
The listing drought on the ZSE was despite reports of interest by several companies, particularly foreign-owned firms seeking to comply with the country’s indigenisation law, to list on the Zimbabwean bourse. The ZSE last had an Initial Public Offering in 2007 when Zeco Holdings listed.
Apart from a series of unbundlings that saw Dawn Properties, Red Star Limited, Zimbabwe Property Investments and Pearl Properties Limited being listed in the last 13 years, new listings have been as rare as snow in this part of the world.
Analysts say a combination of bad policies such as indigenisation have not played in favour of the bourse.
The tight liquidity situation has consequently affected the level of activity on the ZSE with mostly foreign investors accounting for the majority of trades, meaning the bargaining power of sellers was greatly weakened.

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