GetBucks Financial Services made its debut on the Zimbabwe Stock Exchange today after its $3.2 million Initial Public Offer (IPO) registered an underwhelming 2.29 percent subscription level.
The company was listed at a valuation of $37.4 million which translates to a historic price-to-earnings ratio of 7.5. The IPO was undersubscribed, with only 2.29 percent of the 93 567 251 ordinary shares on offer at $0.0342 taken up. Underwriters, DBF Capital Partners, a Mauritius-based investment holding company, took up the rest of the shares. A total of 1 093 567 251 GetBucks shares were listed.
GetBucks, a micro financier, traded at 3.42 cents and became the second listing in the automated trading era after Simbisa Brands – a quick service restaurant spinoff of Innscor Africa – which joined the ZSE in November last year.
The ZSE last year migrated to an automated trading system with the hope of increasing daily turnover, while reducing trading risks inherent with the manual call over system.
The equities market however, has remained bearish with the local bourse shedding $1.3 billion last year with little improvement expected this year in the absence of fresh capital to breathe life into the faltering economy.
GetBucks operations director, Gerri Fourie, said the company was pleased with the strong uptake in the market and was confident that the listing would attract focused and permanent capital to unlock shareholder value.
“The strategic objective of GetBucks Zimbabwe is to retain and grow its market share through a sustainable business model that offers competitive interest rates while managing its cost of funds,” he said.
Fourie said that with a licence from the central bank to operate a deposit-taking microfinance institution dedicated to supporting low-income individuals and SMEs, GetBucks intends to introduce banking products such as saving accounts for individuals, as well as a debit card that will enable customers to transact electronically and have access to other financial services.
GetBucks has been operating in the country since 2013 and has established 13 branches across DBF Capital has since assumed an 8.3 percent shareholding after the IPO, with Mauritius registered GetBucks Limited owning 55 percent shareholding of the local unit while Zimbabwean investment firm, Brainworks owns 34.06 percent. The remaining stake is held by various shareholders, including pension funds and insurance firms.
Its loan book stands at $11.6 million with the non-performing portion of that at two percent, much lower than the 15 percent in the banking sector.
In the full-year to June, GetBucks reported a $6 million profit before tax from $2.3 million the previous year. In 2013, the company made a loss of $183 000.-The Source