Old Mutual Zimbabwe pioneers FINSEC trades after listing at 82c
HARARE – Old Mutual Zimbabwe pioneered trading on the Financial Securities Alternative Trading Platform today when it listed its B class empowerment shares.
Under its indigenisation plan approved by Government, OMZIL issued just over 83 million shares (or 25%)as B Class shares to employees 11%, pension fund, 3,5% strategic partners and 2.5% to the Youth Empowerment fund.
The group traded 107 847 shares on 82 cents with turnover at $88 563 while market capitalization closed at $68 138 373 in its first session.
According to the structure, the employee portion is split into two; the Employee Share Scheme and the Management Incentive Scheme while the rest includes Clients Pension Ex-Gratia Trust, Kurera/Ukondla Fund Trust whose shares act as collateral to loans accessed from CABS by young persons and the strategic partner; Stiefel Investments.
Stiefel Investment is a holding company and provider of advisory services fronted by Luke Ngwerume, Todd Moyo and Tracey Mutaviri.
CABS managing director Simon Hammond said the listing of the shares will broaden market participation to include stockbroking participants, custodians and qualifying indigenous and institutional investors. It would also enhance liquidity in comparison to the Over the Counter trading platform as it will attract wider participation.
Verification of indigenous participants will be done through completed FINSEC mandate forms.
Guest of honour at the listing ceremony, Securities and Exchange Commission of Zimbabwe (SEC) chief executive Tafadzwa Chinamo said the introduction of ATP is designed to broaden and deepen the capital markets by introducing an array of securities that were previously excluded from formal trading platforms.
“The coming on board of FINSEC as an Alternative Trading Platform is therefore expected to see an increased participation of different classes of investors including first time traders,” he said.
Following the gazeting of Securities Alternative Trading Platform rules in August, SEC issued the first ATP licence to FINSEC, a subsidiary of the Escrow group.
Chinamo said the motive for licensing, regulating and monitoring ATP platforms is to promote a savings and investment culture. “We want to achieve this by increasing options investors have as well as the forms of access. This can only be done through formal, safe and secure trading platforms that offer a variety of securities and investment options,” he said.
Chinamo said ATPs are part of the capital markets contribution towards the National Financial Inclusion Strategy which seeks to include all citizens in the formal financial channels in a cost effective manner.
He said OMZIL B Class shares are a direct result of the parent company OM Plc’s need to economically empower the previously marginalised and disadvantaged members of society.
“I call upon companies with similar schemes and other securities being traded Over the Counter to seriously consider bringing such schemes onto formal trading platforms. This will assist in price discovery and promote transparency, liquidity and enhance shareholder value,” he said.
Chairman Rachel Kupara noted that the trading platform was automated and incorporated a CSD.