WestProp will raise US$30m on course to listing on the Victoria Falls Stock Exchange (VFEX) on April 28, becoming the latest company to be lured by incentives on the foreign currency-only bourse, the real estate developer said on Monday.
The initial public offering, the first on the dollar-denominated bourse since it was established in 2020, will raise funding to finance six projects by WestPro, Pokugara Residential Estate, Millennium Heights, Pomona City, The Mall of Zimbabwe, Millennium Heights Office Park and the Hills Golf Estate, board chairman Michael Louis said on Monday.
WestProp becomes the first property development concern to list on the VFEX.
Louis said all statutory regulatory approvals were received on or before March 10.
“WestProp has received approval to list the two categories of its share capital, namely its ordinary shares and preference shares and shall accordingly be opening an offer for public subscription of these securities from 27th March 2023 to 21 April 2023. We shall be conducting roadshows to selected institutional investors from the 28th March to 21st April 2023,” Louis said.
WestProp CEO Ken Sharpe said 1m ordinary shares at US$10 each and 5.4m preferential redeemable convertible shares at US$5 each will be sold.
The preferential shares allow investors a period of 5 years to decide to become ordinary shareholders during which they will benefit from a minimum guaranteed return of 7.5% per year plus dividends from company profits, he said.
Some of the incentives on the VFEX tax exemptions on capital gains and the ability to repatriate funds.