The ZSE has enjoyed its time in the sun over 2020 and 2021 so far. It’s not all positive of course for the bourse. One of the biggest complaints is the lack of listings. In the period 2009 to 2020, there have only been 6 new listings and only one of those new listings was an initial public offering (IPO). New listings increase the options for investors as well as the size of the bourse. While many new listings have been discussed the only one that is probable at this stage is the unbundling of Tanganda from Miekles limited. Let’s have a look at those companies that managed to list since 2009.
Axia’s 2016 listing was an unbundling of the consumer discretionary business of Innscor Limited. Brands that you may recognise under the banner of Axia are durables retailer TV Sales & hire, hardware retailer Transerv and distribution giant Distribution Group Africa. The company boasts healthy performance and returns for investors since its 2016 unbundling.
One of the biggest, if not the biggest listing story on the Zimbabwe Stock Exchange in the period under review is the unbundling of Cassava Smart Tech from Econet. It was introduced in 2018 with unicorn status (achieving a value of over US$1 billion upon listing at the time). While the company is touted as a long term prospect by many analysts and observers it is currently facing pressure from over-regulation in its most lucrative market mobile money. The company has interests in Fintech, Insurance, eCommerce, education, health and agriculture.
GetBucks finance represents the single IPO in the period 2009 to 2020. The financial technology company has largely focused on microfinance since its listing. It hasn’t all been rosy as the company has on occasion failed to file financial reporting requirements. The company has scored some wins since listing including authorisation for international banking.
Padenga holdings had an interesting journey to listing which involved the purchase of the then crocodile pelt producer by Innscor limited. In the same year, the company was unbundled from the Innscor group and listed as a separate entity. In July 2020 Padenga purchased a 50.1% stake in Dallaglio investments, a gold miner, to diversify its business. The coronavirus pandemic has put a dent in Padenga’s earnings according to a profit warning issued by the company but it remains a company with a lot of growth potential in the future.
In 2015, Msaimba Holdings which rebranded from Murray and Roberts Zimbabwe offered shares in their Proplastics business as dividend to shareholders resulting in the listing of Proplastics as a separate entity on the Zimbabwe Stock Exchange. The business is a provider of industrial plastics and solutions that include PVC pipes, polythene pipes, fittings and solvent cement.
Innscor Limited is giant on the ZSE as we have seen from the number of unbundlings that it spurred. Simbisa Brands is essentially the company that started it all with the quick service restaurant established in 1987. August 2015 Simbisa Brands was incorporated as a wholly-owned subsidiary of Innscor limited and in October 2015 Simbisa was unbundled through reconstruction of its shareholding and listed as a separate entity. The business has spread to Zambia, Kenya, DRC, Ghana, Malawi, Namibia, Mauritius and Swaziland over the years and boasts impressive results.
There is precious little to celebrate in the way of listings and compounded by the number of delistings that have been experienced in the same period.