OK Zimbabwe shareholders approve US$30.5m aapital Raise
STAFF WRITER
OK Zimbabwe Limited shareholders have approved a US$30.5m capital raise aimed at revitalising the company and positioning it for long-term growth and transformation.
The capital injection will be executed through a combination of a rights offer to existing shareholders and the disposal of selected immovable properties.
According to the company, US$20m will be raised through the issuance of 1,834,982,573 new ordinary shares, each with a nominal value of ZiG0.0001.
These shares will be offered to existing shareholders at a subscription price of US$0.0109 per share, payable in full in US dollars. The rights offer will be made on the basis of 1.37 new shares for every one share held at the record date.
In addition, shareholders approved the sale of several immovable properties expected to raise a further US$10.5m.
Among the properties earmarked for disposal are a vacant commercial stand at Stand 19676 Harare Township of Salisbury Township Lands along Liberation Legacy Way in Borrowdale; a warehouse at Stand 14997 Salisbury Township on Birmingham Road in Workington; the OK Mbuya Nehanda store located at 118 Mbuya Nehanda Street, Harare; the OK Gweru store situated at Stand 151A Gweru Township, 67 Main Street/Livingstone Avenue; the OK Glen View outlet in Glenview, Harare; the OK Malvern store on 23 Simon Mazorodze Road in Waterfalls, Harare; and a commercial property along the Harare-Masvingo Highway in Southlea Park, identified as Stand 6464 Odar Township.
To support the capital raise, shareholders endorsed the National Social Security Authority (NSSA) as the lead underwriter, with Datvest Nominees (Private) Limited and Old Mutual Life Assurance Company Limited acting as sub-underwriters.
In a parallel move to strengthen corporate governance, shareholders also approved a board restructuring to be implemented at the upcoming Annual General Meeting.
The objective, according to the company, is “to refresh and align [the board] with the company’s future strategic direction and to allow for the onboarding of new skills to drive the next phase of transformation.”
The approval of both the capital raise and the governance overhaul marks a pivotal moment for OK Zimbabwe, as it seeks to bolster its capital base, enhance competitiveness in a challenging retail environment, and accelerate its transformation agenda.
