Old Mutual lists B class shares on Zimbabwe’s secondary market

Old Mutual lists B class shares on Zimbabwe’s secondary market

HARARE, December 1 (The Source) – Old Mutual Zimbabwe Limited (OMZIL) on Thursday became the first counter on the Alternative Trading Platform (ATP), listing 107,847 of its B Class shares.

To comply with the country’s local ownership laws, Old Mutual gave up 25 percent of its issued share capital to indigenous investors in 2011. Under the indigenization scheme, 11 percent of the shares were awarded to employees, eight percent went to pensioners and 3,5 percent to strategic partners. A special youth fund was also created and got 2,5 percent of the shares.

The B Class shares traded at 82.10 cents, achieving a turnover of $88,513.

The platform, which is run by private firm Financial Securities (Finsec), was licenced by the Securities and Exchange Commission in September this year.

“We want to broaden our market participation in trading of our shares to include individuals and institutional investors. We want to allow the market to determine the price discovery mechanism in trading of the shares,” said Simon Hammond, managing director of Old Mutual’s building society CABS.

“It should increase the visibility of our OMZIL brand in the market by having the shares trading on a public platform rather than on an OTC (over the counter) and it keeps up with the international best practices in the electronic trading and settlement of financial security.”

Finsec chief executive Collen Tapfumaneyi said he expected more firms to join the platform.

“We have heard a number of inquiries so it is promising that we will have more companies listing,” he said.

Securities and Exchange Commission of Zimbabwe (SECZ) chief executive, Tafadzwa Chinamo, said that the new platform will expand the country’s capital market and improve financial inclusion.

“The introduction of ATP is designed to broaden and deepen the capital market by introducing an array of securities that were previously excluded from formal trading platforms or were trading in the shadows…. This is part of the capital market’s contribution towards National Financial Inclusion strategy which seeks to include all citizens in the formal financial channels in a cost effective manner,” he said.