Property developer, WestProp Holdings Limited has announced it’s going public by listing on the Victoria Falls Stock Exchange (VFEX) next month after securing all necessary approvals.
The VFEX -a USD-indexed bourse and also a subsidiary of the Zimbabwe Stock Exchange (ZSE) has been attracting many companies since its formation over two years ago due to several sweeteners, including zero capital gains tax on share disposal and lesser transacting costs.
To date, the VFEX has managed to get 9 listings.
Addressing the media this morning in Harare, the company said it expects to raise US$ 30 million through an Initial Public Offering (IPO) starting today until the 21st of April.
“WestProp’s IPO is to raise US$30 million capital to accelerate development of our existing projects that include Pokugara Residential Estate, Millenium Heights, Pomona City, The Mall of Zimbabwe, Millenium Heights Office Park and the Hills Golf Estate,” said company chairman, Michael Louis.
The IPO offers one million ordinary shares at US$ 10 each and US$ 5.4 million preferential redeemable convertible shares at US$ 5 each. The preferential shares allow investors a period of 5 years to decide to become ordinary shareholders during which time they will benefit from a minimum guaranteed return of 7.5 percent per year.
The company expects to grow its annual sales of US$ 40 million to over US$ 100 million in the next seven years to create a balance sheet exceeding US$ 1 billion, which is five-fold the current value.
“By 2050 we will pioneer world class, vertically integrated, premium lifestyle communities in Zimbabwe,” said company Chief Executive officer Ken Sharpe.
“”We have made great progress over the past few years with limited resources and as such I can confirm as of last Monday we had laid 5 298 975 bricks and have 55 626 972 as committed bricks from our existing sales.”
The company will this year open new markets and projects like the Mall of Zimbabwe, the Hills Golf Estate and Pomona City. It has also done projects which includes Mbudzi mall, Pokugara houses and Millennium Heights.
WestProp has a long history in the property development sector stretching back to 2007.
