ZHL $15mln rights issue undersubscribed

ZHL $15mln rights issue undersubscribed

HARARE, February 26 (The Source) – Zimre Holdings Limited’s (ZHL) $15 million rights offer registered an 18,03 percent level of subscription, reflecting the generally low market appetite for new stock.

ZHL is a holding company with interests in reinsurance, short-term insurance, financial services and property development.

NMB Bank, which underwrote the capital raising initiative, was left saddled with nearly 82 percent of the unsubscribed for shares.

The fundraising initiative was approved at ZHL’s January AGM in a bid to strengthen the group’s capital base and increase its underwriting capacity.

A total of 750 million new ordinary shares were offered for cash at a subscription price of $0, 02 each to existing shareholders on a basis of one new ordinary share for every 1,041 ordinary shares already held by existing shareholders.