Happiness Zengeni Business Editor
Local micro-finance institution GetBucks Zimbabwe will soon launch an initial public offering on the Zimbabwe Stock Exchange in order to raise $3,75 million. It will be the first IPO since Phillip Chiyangwa’s Zeco Holdings listed during the Zim dollar era in 2007.
GetBucks is owned 55 percent by GetBucks Limited, a South African company, and 45 percent by investment holding firm Brainworks Capital Management.
The company commenced operations in 2012 as a credit only micro-finance institution. It currently has 13 branches in all the major centres of the country. Its loan book as of June 30, 2015 stood at $11,6 million.
GetBucks was licenced as a deposit taking micro-finance institution in July this year and is currently finalising the infrastructural and operational requirements before commencing banking operations.
Well-placed sources told The Herald Business that GetBucks is pursuing the IPO to comply with the shareholding structure prescribed by the Reserve Bank of Zimbabwe under new guidelines.
“The IPO will be approximately 20 percent of the shareholding to enable the company to comply with RBZ requirements.”
Other reasons for the IPO include the need to strengthen and enhance the visibility of GetBucks Zimbabwe brand to both public and private sectors and to further strengthen the corporate governance structures of the company by adhering to the rigors of a listing.
Recently, ZSE chief executive Alban Chirume was quoted by an email-based service as saying the local bourse will have two new listings before the end of the year. He said one company will come as a result of an unbundling while the other is a new company that has just shown interest in listing on the exchange. Innscor Africa is set to separately-list its fast food business on the ZSE as part of strategies to unlock shareholder value.
Proplastics was the first company to list on the ZSE in three years following its unbundling from Masimba Holdings this year. All the other listings after dollarisation were reverse listings and unbundlings. GetBucks will be the first IPO in eight years.
In an update to the shareholders recently Mr Patrick Matute Brainworks head of advisory said GetBucks had made $4,5 million in its initial year which ended in June.
Its loan book increased 389 percent in 2014 full year and 88 percent at FY15.
GetBucks has been able to raise funds through the Promisory Notes programme which has allowed the company to underwrite more business. According to the company, it has raised offshore funds at 11 percent.
Its South African shareholder GetBucks Limited, operates in nine countries in Africa and Europe and is in the process of expanding its footprint. It was the first online lender in Africa and only online lender outside South Africa.
The sources said that while the listing price was still being worked on, the company is expected to be valued between $30-45 million on a long range.