eBusiness Weekly
Business Reporter
The FINANCIAL Securities Exchange Limited (Finsec) expects to add five new listings on its Alternative Trading Platform (ATP) this year as more companies look to capital markets for funding.
The new companies are drawn from various sectors of the economy including manufacturing and property, Finsec general manager Garikayi Munema said. These, he said, will list through initial public offers (IPO) and by introduction.
Munema said discussions were underway with the prospective listings, although he could not be drawn to give the identities of the companies as they are yet to complete regulatory processes. “There are a few companies that we are already discussing with for possible listings,” Munema said in an interview with Business Weekly.
“We have about four or five firms for possible listings in varied sectors. These are all coming through initial public offers. We are also working on initiatives to further increase and attract more listings as we increase our market share,” he said.
Finsec currently has two listings, Old Mutual’s empowerment shares and the Infrastructure Development Bank of Zimbabwe (IDBZ) bond. The capital markets firm should also see Untu Capital list this January through an IPO.
Munema said Untu Capital’s IPO, which closes on January 26, had overwhelming response from retail subscribers using the mobile trading platform, becoming the first to implement mobile trading of securities in the Southern African region.
The mobile platform has been successful in Kenya, where it led to participation of more indigenous investors to participate in capital markets, due to affordability and efficiency.
This enables investors to trade using their mobile devices and mobile money wallets, with a minimum investment amount of $50. Munema said the mobile platform was crucial in attracting the mass market and demystifying capital markets as elitist.
Currently dominated by the Zimbabwe Stock Exchange (ZSE), the country’s capital markets have been skewed towards foreign investors as financial exclusion among locals has been prevalent.
However, Munema said the impetus for growth in the capital markets is there, especially with the mobile platform which should create more delivery channels and enhance participation by individuals.
According to the Reserve Bank of Zimbabwe, financial exclusion in capital markets is at 99 percent. “It should not be difficult to participate in capital markets. The delivery channels must be easier to increase participation and financial inclusion.
“This is an opportunity to bring capital markets to the people through use of technology,” said Manema. Finsec facilitates electronic trading of wide variety of securities, thereby formalizing marginalized market segments and bringing all alternative trading activities onto a central and organized market place.
