HARARE – The government has demutualised the Zimbabwe Stock Exchange (ZSE) in a move that will result in the local bourse being owned by private investors.
Under the demutualised ZSE, the government will reduce its shareholding from the current 32 percent to 16 percent while stockbrokers will offload their stake from 68 percent to 34 percent.
Private investors are expected to get a 20 percent shareholding with the public acquiring 30 percent shares.
Securities Exchange Commission of Zimbabwe Chairperson, Mrs Willia Bonyongwe said the transformation of the equities market into a private company will increase foreign investor participation on listed counters.
“There will be excitement in that perspective and it is something that will boost the value of shares,” said Mrs Bonyongwe.
The Minister of Finance and Economic Development, Patrick Chinamasa said the demutualisation of the ZSE will provide a diversified shareholding structure aimed at ensuring that the market capitalisation or total value of shares will reach US$100 million in the next three years.
“As the government, we are optimistic that we shall attain our intended goals,” he said.
Demutualisation also entails the separation of ownership of the exchange from the management in line with global capital market systems.
The process is aimed at transforming the exchange from a statutory body into a profitable public listed company.