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capital base of US$50 million by end of June.

Without disclosing how much the company intends to raise, the group said it would be a combination of a rights issue to the existing shareholders and an offer of shares to new investors.

“AfrAsia Kingdom Zimbabwe advises its shareholders that it is embarking on an exercise to raise more capital in line with the Reserve Bank of Zimbabwe regulatory requirements,” the group said.

“It is likely that this process will incorporate a rights issue to existing shareholders and an offer of shares to new investors. Cornerstone shareholder AfrAsia Holdings Ltd have committed to following their rights in any capital raising and discussion with potential new investors are already at an advanced stage.” The group said it would approach shareholders seeking approval.

Last year, AfrAsia Bank Limited acquired a 35 percent stake in Kingdom Financial Holdings Limited.