from the Financial Times’ beyondbrics..
May 23, 2013, by Andrew Bowman
Investing in Zimbabwe is not for the faint-hearted. But its stock exchange has been booming of late. To maintain the momentum, management at the Zimbabwe Stock Exchange is planning to sell shares in the organisation this year to raise funds for modernisation.
Tafadzwa Chinamo, chief executive of the Zimbabwean Securities Exchange Commission said in an interview with Bloomberg that an initial public offering would take place before the end of the year, with a likely valuation of around $15-20m.
Despite the negative publicity the country tends to generate among international investors – most notably the indeginsation laws forcing foreign companies to hand over majority stakes to local owners – the ZSE has delivered exceptional growth. So far this year, its industrials index is up by around 38 per cent, hitting record highs with the majority of trading accounted for by foreign investors.
The exchange was formally state-owned but has come to be mutually run by its members, the stockbroking companies. Going public will, the SEC hopes, improve governance and increase the attractiveness of the exchange to international investors…