OK Zimbabwe sells properties, seeks US$30M boost

Rutendo Mazhindu

Zim Now Reporter

OK Zimbabwe Limited has unveiled a comprehensive plan to raise US$30 million. This strategic initiative involves a combination of a rights offer to existing shareholders and the sale of several key properties, some of which will be leased back to ensure business continuity.

The retail giant's decision comes as it grapples with over US30millionowedtocreditors,includingUS24 million to suppliers, US5.12millionforutilitiesandservices,andUS880,000 in statutory obligations. To tackle this, OK Zimbabwe aims to secure US20millionfromarenounceablerightsofferandanadditionalUS10.5 million through the disposal of select real estate assets.

Among the properties slated for sale are prominent locations such as OK Mbuya Nehanda, OK Glen View, Birmingham Warehouse, OK Gweru, OK Malvern, and several stands in Ordar Township, Borrowdale, and Mutoko. Notably, for properties currently occupied by the company, the sales will include pre-agreed long-term lease arrangements, allowing OK Zimbabwe to continue operating from these sites without ownership. This approach, the company noted, will prioritize properties offering the "greatest saleability and value realization."

The renounceable rights offer will see the issuance of 1,834,982,573 new ordinary shares. Shareholders on record as of July 21, 2025, will be entitled to subscribe for 1.37 new ordinary shares for every 1 share held, with all transactions explicitly in US dollars.

OK Zimbabwe's leadership emphasized that these financial maneuvers are not isolated actions but integral components of a broader "bold, co-ordinated transformation agenda." The company articulated its entry into a "transformative period" driven by a clear turnaround strategy focused on restoring financial strength, enhancing operational efficiency, and ultimately boosting long-term shareholder value. This initiative, they stated, reflects a decisive "recalibration of the business and its leadership."