PHILLIMON MHLANGA IN SUN CITY, SOUTH AFRICA
Goodbook Investments trading as Kumusha Power, plans to list on the Financial Securities Exchange ((Finsec) platform in the next two months, in what would be the first energy initial public offer (IPO).
Other companies that have listed on the alternative securities exchange platform are Old Mutual, Untu Capital and the Infrastructure Development Bank of Zimbabwe.Kumusha want to raise US$3 million. Old Mutual Securities (OMS) have been engaged as transaction advisors.
Speaking at the on-going Institute of Chartered Accountants of Zimbabwe Winter School in Sunday City, South Africa, Milan Vidovic,who is the company’s chief operating officer said: “Since 2010, we have worked with globally recognised brands such as Toshiba, Kramer and TOA,supplying, selling and supporting domestic appliances through large retail chains and sophisticated credit and payroll lending organisations.”
The Kumusha Power boss added: “In 2017,d.light was added to the offering to supply the Zimbabwe market with domestic solar lighting and appliance solutions alongside the existing business of distributing televisions and refrigerators and other audio visual dilutions. With the support of some high profile global investors d. light has raised over US$168 million.
“The situation on the ground is that about 1,9 million households are not connected on the national grid, meaning about nine million people are in the dark. We believe we have the capacity to reach 15% of the total market in six years.”
Simbarashe Mangwendeza, a research analyst at OMS, also told the ICAZ Winter School: “The total capital to be raised is US$3 million. The IPO listing application will be submitted between September and October 2019.There are,however, four risks to be managed namely policy uncertainty, currency risk, high cost of credit and inflation.”
Mangwendeza added that Kumusha is looking for Dixon types of investors, the underwriter, the Diaspora clients, impact investors, banks, private placements and local retail investors.