ZIMRE Property Investments Initial Public Offer over subscribed (17-07-07)

ByPaul Nyakazeya

ZIMRE Property Investments Initial Public Offer, which closed last Friday, was most likely oversubscribed, the company’s financial advisors said today.
The company, which is being spun off by insurance giant Zimre Holdings, was in the market

to raise $554 billion to expand its property investment portfolio.
Financial advisors to the IPO, Genesis Investment Bank, said the offer had attracted huge interest in the market, particularly among institutional investors.
The managing director of the bank, Fulton Chibaya said initial indications pointed to an oversubscription of the IPO, which came after a long pause in equity market listings by local companies.
“It was oversubscribed, but we are not sure of the level yet . . . everything should be clear by tomorrow (Tuesday),” he said.
“We had a strong response from institutional investors, and these took up a large slice of the cake,” he added.
The IPO followed a private placement of more than 470 million shares, in which ZPI raised more than $430 billion. This will bring the total capital raised, including proceeds from the IPO, to close to $1 trillion.
The company plans to use the money to expand its property investment portfolio, which include both commercial and residential. ZPI develops and manages property, and is one of the largest such companies in the country.
“In line with the strategy to create tangible value for the shareholder, ZPI plans to acquire and develop land for trading. Further to the property contributions from the private placement, proceeds from the listing will be used to acquire more land and buildings in pursuit of the targeted portfolio mix,” the company said in its prospectus.
The IPO opened on July 25, 2007 and closed last Friday, with around 370 million shares on offer at $1 500 per share
ZIMBABWEAN executives seem to be making it big in South Africa. JSE listed Highveld Steel and Vanadium Corp (HVLJ.J) has appointed Walter Ballandino, a Zimbabwean, as chief executive.
Ballandino replaces Andre de Nysschen at the helm of the R9, 1 billion company.
Ballandino joins fellow Zimbabwean executive Peter Moyo, who heads Alexander Forbes, on the JSE CEOs table.
 Highveld is 54,1% owned by Russian steel maker Evraz Group

Post published in: Economy

Leave a Reply

Your email address will not be published. Required fields are marked *