Published: 06 May 2014

Government and stockbrokers have agreed in principle, subject to cabinet approval, on the equity structure to be followed when the Zimbabwe Stock Exchange is demutualised.

According to the agreement, Government and stockbrokers will have a 40:60 goodwill equity structure pre-demutualisation based on a valuation of $5 million.

After demutualisation stockbrokers will own 34% of the exchange and Government 16%.

A further $5 million will be raised through initial public offering (at $3 million) for 30% stake and $2 million for private placement for a 20% shareholding.

Finance and Economic Development Minister Patrick Chinamasa said yesterday he had reached common understanding with stockbrokers over demutualisation of the ZSE following "cordial engagement".  

Chinamasa said government acknowledged it had not contributed any money to the affairs of the stock exchange since 1946 but because it was a statutory body, it should have a stake post demutualisation.
- The herald

You might also want to read this

• Stocks back in negative territory on Simbisa, Innscor
• ZSE falls as RBZ readies corporate OMO Bills to mop up excess liquidity
• Market breadth turns negative as ZSE falls further
• ZSE stocks incredibly cheap, says Imara
• ZSE closes lower on heavyweight losses
• Mid-tier stocks drive ZSE to a marginal gain
• Sell the laggards, buy disruptors
• ZSE loses 0.03% while mid-caps continue to rally
• ZSE stocks recover by 40%
• Resurgent ZSE recovers in September