Three companies have been given approval by regulatory authorities to list on the Zimbabwe Stock Exchange (ZSE), in a move expected to end a listing drought that has affected the local bourse for the past 16 months.
In a move thatÂ is expected to stimulate stock market activities,Â threeÂ firms are expected to floatÂ InitialÂ PublicÂ Offers (IPOs) to interested investors after being granted approvalÂ by the ZimbabweÂ StockÂ Exchange listing committee, Government and the Securities Commission of Zimbabwe.
ZSE Chief Executive Officer, Mr Emmanuel Munyukwi confirmed the listing of three new counters on the market saying the move is among other factors expected to consolidate a rebound in market activities since last month.
â€œI can safely confirm that three counters,Â Padenga, Kingdom Financial Holdings and the other one I can not disclose at the moment,Â will be listing and this is positive news as we move towards ensuring that the local market rebounds,â€ said Mr Munyukwi.
Mr Munyukwi said that the local stock market has been experiencing challenges in terms of fresh listings on the back of capital constraints and however confirmed that one counter, Red Star, will be delisted by next year.
â€œUnfortunately, Red Star will be delisting from the local bourse and this is a major cause for concern to us,â€ said Mr Munyukwi.
The ZSE has since the beginning of this year lost more than US$2 million due to profit taking from investors, in a move that has also resulted in the stock market authorities reviewing downwards the projected market capitalisation to at least US$4 billion from US$7 billion.