The Sunday News
Senior Business Reporter
THE Zimbabwe Stock Exchange Limited (ZSE) has signed a Memorandum of Understanding (MoU) with listed micro-finance concern, GetBucks Microfinance Bank Limited, which will see the two parties working together towards the formation of a secondary bourse to cater for Small to Medium Enterprises (SMEs), the Zimbabwe Emerging Enterprise Market (Zeem).
In a statement to stakeholders, ZSE confirmed the signing of an MoU with GetBucks Microfinance Bank, which would pave the way for the operationalisation of the Zeem.
“The ZSE wishes to advise stakeholders on the signing of a MoU between the ZSE and GetBucks. The partnership will entail the two parties working together towards operationalising Zeem,” read part of the statement.
ZSE said as part of ensuring the listing of SMEs on the secondary bourse it would conduct a series of trainings in various parts of the country.
“The Zeem product will be offered through an over the counter platform targeted at initially offering working capital solutions for formalised businesses, including SMEs. Over time, the ZSE will facilitate and assist small to medium size enterprises to list on the secondary bourse through training, workshops and other initiatives to educate SMEs on benefits of listing and meeting the requirements. GetBucks will play a critical role in terms of support,” read the statement.
The two institutions are also working towards establishing a Receivables Exchange. A Receivables Exchange is an auction-based marketplace connecting large corporate sellers of receivables to a broad network of buyers.
“The ZSE and GetBucks are also working together in establishing a receivables exchange, a precursor to the Zeem project. This collaboration reinforces ZSE’s drive to foster the growth of the capital markets in Zimbabwe and resonates with our vision of facilitating economic development in Zimbabwe and Africa. The ZSE is looking forward to a fruitful partnership with GetBucks in ensuring the growth of SMEs under ZEEM,” read the statement.
A company applying for listing on Zeem is expected to have been incorporated and
registered in terms of the Companies Act (Cap 24.03) or under any other law of the country of incorporation. It should have a minimum share capital (including reserves but excluding minority interests, and revaluations of assets and intangible assets that are not supported by a valuation by an independent professional expert acceptable to the ZSE prepared within the last six months) of $250 000 at the time of listing.
According to the regulations, the public shall hold a minimum of 26 percent of each class of equity securities listed and the number of public shareholders shall be at least 50.
The regulations state that for a company
currently listed on the ZSE, the float is 30 percent and the number of shareholders should be at least 300. The company should also have historical financial information in respect of a period of at least one year up to the year of issuing the pre-listing statement of the
applicant, prepared in accordance with
International Financial Reporting Standards.