FINSEC lists Old Mutual shares Finsec chairperson Rachel Kupara (left), Securities and Exchange Commission of Zimbabwe chief executive Mr Tafadzwa Chinhamo (centre) and CABS managing director Mr Simon Hammond follow proceedings during the listing of Old Mutual empowerment shares yesterday
Finsec chairperson Rachel Kupara (left), Securities and Exchange Commission of Zimbabwe chief executive Mr Tafadzwa Chinhamo (centre) and CABS managing director Mr Simon Hammond follow proceedings during the listing of Old Mutual empowerment shares yesterday

Finsec chairperson Rachel Kupara (left), Securities and Exchange Commission of Zimbabwe chief executive Mr Tafadzwa Chinhamo (centre) and CABS managing director Mr Simon Hammond follow proceedings during the listing of Old Mutual empowerment shares yesterday

Business Editor—

OLD Mutual Zimbabwe became the first company to trade on the Financial Securities (FINSEC) Alternative Trading Platform yesterday after it listed its empowerment shares, which make up 25 percent of the group.At opening, 107 847 shares traded at 82 cents with turnover at $88 563 while market capitalisation closed at $68,14 million.

In response to the requirements of the indigenisation laws and in terms of an agreement entered into with the Ministry of Youth Development, Indigenisation and Empowerment, Old Mutual agreed to convert 25 percent of its stake to fully paid B Class Shares totalling 83,01 million for the beneficial interest of approved and qualifying indigenous beneficiaries.

The indigenisation plan, approved by the then Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere in 2011 resulted in 21,5 percent being awarded to beneficiaries which includes staff (11 percent), pension fund (8 percent) and youth (2,5 percent) while 3,5 percent was allocated to a strategic partner.

Before the listing, the B Class Shares were being traded exclusively over the counter at Old Mutual Securities. However, CABS managing director Simon Hammond said listing on the Empowerment Board of the FINSEC ATP would broaden participation to include stockbrokers, custodians and qualifying indigenous individuals and institutional investors.

Mr Hammond also added that the listing would allow for a market determined price discovery mechanism on the shares which were previously traded based on an independent external valuation price.

“Further the listing will increase the visibility of the OMZIL brand in the market by having B Class Shares traded on a public platform rather than exclusively on the OTC. The listing will also unlock shareholder value through access to a big platform with a variety of market participants.”

Guest of honour at the listing ceremony, Securities and Exchange Commission chief executive Tafadzwa Chinamo said the licencing of alternative trading platforms is designed to broaden and deepen the capital markets by introducing an array of securities that were previously excluded from formal trading platforms.

“The coming on board of FINSEC as an ATP is therefore expected to see an increased participation of different classes of investors including first time traders,” he said.

Mr Chinamo said the motive for licensing, regulating and monitoring the ATP platform is to promote a savings and investment culture.

“This can only be done through formal, safe and secure trading platforms that offer a variety of securities and investment options,” he said.

Mr Chinamo said ATPs are part of the capital market’s contribution towards the National Financial Inclusion Strategy which seeks to include all citizens in the formal financial channels in a cost effective manner.

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