IMARA Capital Zimbabwe managing director Sean Gammon yesterday said mining companies should consider secondary listings on the Zimbabwe Stock Exchange (ZSE) in a bid to boost capital on the local market as well as provide more investment options on the local bourse.
Report by Victoria Mtomba
Speaking on the sidelines of an Imara investment annual conference in the capital, Gammon said this year’s meeting was aimed at ways of improving foreign investor participation on the ZSE.
Secondary listing is the issuance for public sale from a company that has already made its initial public offering.
The ZSE currently has four listed mining companies that include Bindura Nickel Corporation, Falgold, Hwange and RioZim, despite the country having many mining companies. Major mining companies such as platinum miners Zimplats, Mimosa, Unki, which have in recent years relinquished their stakes to locals in compliance with indigenisation and empowerment regulations, have primary listings offshore.
The mining index has been averaging 73 points since 2009 when the country introduced the multicurrency system.
Most mining companies are listed on foreign stock exchanges that include the London Stock Exchange and the Toronto Stock Exchange due to the capital-intensive requirements of the mining sector.
“The mining sector is not properly represented on the market. A number of companies should come for secondary listing. The issue is, there are no large amounts of capital in Zimbabwe. Secondary listing is something that we want to see,” Gammon said.
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He said the ZSE was one of the best performing markets in the African region and there had been so much interest in the region compared to Western markets. He cited Delta which had since 2009 doubled its share price compared to its regional peers. Gammon added mining was expected to be a big driver in economic growth yet it was not well represented.
“The secondary listings will provide investors with more options for investment horizons and more capital,” he added.
