OK Zimbabwe raises US$20 million

Published: 11 August 2025

Retail giant OK Zimbabwe Limited has successfully raised US$20 million through its renounceable rights offer, which was fully subscribed following strong shareholder participation and underwriting support.

The capital raising exercise, which ran from July 21 to August 4, 2025, saw shareholders take up 1 410 976 680 shares worth US$15,38 million, representing 76,94% of the total shares on offer. The remaining 424 005 893 shares, valued at US$4,61 million, were subscribed to by underwriters, in line with the underwriting agreement.

As of February this year, the retailer owed suppliers US$30,34 million. The US$20 million raised marks the first stage of a two-pronged plan to secure a total of US$30,5 million to settle debts and recapitalise operations. The second stage involves raising US$10,5 million through the sale of selected company properties.

"The rights offer was fully subscribed through a combination of shareholder take-up and shares taken up by the underwriters," the company said in a statement. "Proceeds will be applied towards partial settlement of legacy creditors, supporting the company's working capital and capital expenditure requirements, and unlocking fresh supplier support."

OK Zimbabwe said it is currently receiving and assessing offers for the identified properties, with negotiations underway to ensure that any sales are in the best interests of shareholders and consistent with its long-term strategic objectives.

The board expressed gratitude to shareholders for their confidence and to the underwriters for their commitment to the success of the capital raise, adding that it remains focused on delivering value through the execution of its strategic initiatives.
- Newsday

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