WestProp Holdings, which starts trading at the Victoria Falls Stock Exchange tomorrow, has taken a huge gamble after it raised only US$3.3 million against a target of US$40 million through its initial public offering.
Chief executive Ken Sharpe,however, said investors should not despise this humble beginning “because we will be coming back to the market with a fresh round of preference shares”.
WestProp raised only US$14 050 instead of US$10 million after selling 1 405 out of one million ordinary shares.
It raised a further $276 590 from 55 318 preference shares when it aimed to raise US$30 million. A further 600 000 preference shares were taken up by the underwriter.
The company raised a total of US$3 290 640 against a target of US$40 million
WestProp was supposed to be listed on 28 April with a big launch party on 29 April but this was cancelled after a group of investors challenged the listing because the company had not published a full list of litigations against it.
The Securities and Exchange Commission of Zimbabwe concurred, ruling that WestProp should have included the litigations cited by those opposing its listing so that investors could make an informed decision.
The commission said VFEX should ask WestProp to make a supplementary litigation report with all the necessary disclosures before listing.
WestProp initially brushed off the challenge but complied by publishing the supplementary litigation report on 2 May.
Here it is: