Caledonia Mining Corporation says its offer to raise US$5m on course to listing on the Victoria Falls Stock Exchange (VFEX) has been oversubscribed due to “positive investor appetite”.
The Toronto-Stock Exchange-listed miner said it would take additional 228,575 Zimbabwean Depository Receipts (ZDRs), representing US$2,889,191.88.
The company had offered 623,050 units at a price of US$ 12.64 per issue. The offer, which opened on November 3 closed on November 24.
“Due to very positive investor appetite, Caledonia has decided to take the opportunity to accept the additional 228,575 ZDR subscriptions representing US$2,889,191.88,” Caledonia’s company secretary Adam Chester said in a notice.
In a tweet Monday, VFEX chief executive officer Justin Bgoni said: “This is the main reason we started VFEX. For companies to raise funds to expand their businesses.”
In a pre-listing statement early this month, Caledonia said the proposed listing was expected to enable the group to benefit from incentives announced by Finance and Economic Development minister Mthuli Ncube in which listed companies on VFEX would entitle the miner to 100% US$ retention of revenue earned on incremental exports.
It said Caledonia will be able to access investors in Zimbabwe thus creating local shareholder spread and liquidity.
Caledonia said the listing would allow Caledonia to hold capital raised through the VFEX in approved local or offshore accounts with an internationally recognised banking institution.
Capital raised would assist the company in funding future expansions, such as financing Caledonia’s proposed purchase of the Maligreen Project claims, situated in Gweru.
It said the listing would enable Blanket employees who hold long term incentive plan awards to opt for ZDRs rather than cash upon vesting to allow them to receive a dividend paying investment referenced to an offshore share price; this is anticipated to have a positive effect on morale and enhance long-term goal congruence between senior employees at Blanket and Caledonia.