Zimpapers Logo

Michael Tome and Malvern Nkomo

LOCAL property developer, West Properties Holding Limited has announced its intention to list on Victoria Falls Stock Exchange (VFEX) on 28 April 2023.

This is the first Initial Public Offering in the country since Getbucks was listed on Zimbabwe Stock Exchange (ZSE) in 2016.

West Property Holdings was awarded the green light to become a public company and list on the Victoria Falls bourse through the Registrar of Companies on 7 March 2023.

It received approval to list the two categories of its share capital, namely its ordinary shares and preference shares.

The company intends to issue up to 5,400,000 convertible redeemable participating preference shares at a price of US$5 each, representing an aggregate amount of up to US$27 million.

It intends to issue up to 1 million ordinary shares at a price of US$10 each, representing an aggregate amount of up to US$10 million bringing the cumulative amount to US$37 million.

The minimum subscription of shares has been pegged at US$50 (10 shares) for preference shares at US$5 each, while ordinary shares at US$100 (10 shares) at US$10 each.

According to West Properties, the IPO is to raise capital to accelerate the development of ongoing projects that include Pokugara Residential Estate, Millennium Heights, Pomona City, The Mall of Zimbabwe, Millennium Heights Office Park, and the Warren Hills Golf Estate.

West Properties chief executive officer, Mr Ken Sharpe said the preferential shares allow investors a period of 5 years before they decide to become ordinary shareholders, a period during which they will benefit from a minimum guaranteed return of 7,5 percent per year as well as dividends from the company’s profits.

“We have successfully migrated from being a private company to a publicly listed company on the Victoria Falls Stock Exchange. We have a goal of taking our company from the current annual sales of US$40 million to over US$100 million within seven years and creating a balance sheet that will exceed US$1 billion in value which is more than 5 times the one today and all the shareholders will benefit from this growth.

“The issuer is implementing its strategic plan of creating real estate valued in excess of US$1 billion and up to US$5 billion on its land banks,” reads part of the Prospectus. 

“We know It is achievable and within our grasp. It is with this in mind that I confirm WestProp Holdings Ltd is now a public company and encourage members of the public, pension funds, and investors to invest by buying shares and take up a stake in the company and join us in our journey of a billion bricks,” said Mr Sharpe.

West Property Holdings chairman Dr Michael Louis alluded that the company decided to list on the Victoria Falls Stock Exchange given its extensive benefits to shareholders, which include zero capital gains tax, minimum transaction costs, and stability of the shares given their trading currency (US Dollars).

“This decision by the board is in line with the National Development Strategy of Zimbabwe to achieve an empowered upper- middle-income society by 2030 to chart a new transformative and inclusive development agenda,” said Dr Louis.

The firm has already raised an initial private placement of the company prior to listing with a minimum of 50 shareholders and has already raised US$1 million underwritten by Alpha Holdings Mauritius. 

The firm has a vision of laying “1 billion bricks by 2050” under the mantra “Bringing Dubai to Zimbabwe” which means the development and construction of Dubai-style buildings in Zimbabwe.

It’s completed and under construction projects include more than 1,000 residential units namely, Homeland 263, Pokugara Clusters Phase 1 and 2, Pokugara Residential homes/stands, Gunhill Rise, Pomona City stands phase 1A and phase 1B and C, Millennium Heights Apartments Block 1, 2 and 3. Our retail development, Mbudzi Market, was completed in 2015 and is operational and fully let.