ZSE Holdings Debuts on Main Board

Audrey Galawu- Assistant Editor

Zimbabwe Stock Exchange Holdings Limited officially listed its 102.7 million ordinary shares on the Zimbabwe Stock Exchange Main Board on July 9, 2025, marking a major step in the evolution of Zimbabwe’s capital markets.

The listing was executed by way of introduction, meaning no new shares were issued to the public. This approach, approved by the Securities and Exchange Commission of Zimbabwe, follows a shareholder-backed restructuring process initiated in late 2024.

The move effectively brings the ZSE and the Victoria Falls Stock Exchange under a single holding company while maintaining their independent operations.

In a statement, ZSE Holdings said the listing is designed to “enhance access to capital markets, unlock shareholder value, strengthen brand visibility for ZSE and VFEX, and improve corporate governance through public reporting obligations.”

The listing follows a reconstruction scheme that allowed the government —ZSE Holdings’ largest shareholder with 32%—and other stakeholders to consolidate shareholding in a more transparent corporate structure.

According to the prelisting statement, ZSE Holdings did not issue new shares for public subscription. However, in compliance with listing regulations, the company added 700 shareholders via a private placement of 8,520 shares to ensure it met the minimum spread requirement of at least 300 public shareholders.

As at June 18, 2025, the top 15 shareholders, including financial institutions such as FBC Securities, I.H. Securities, and Old Mutual Securities, held approximately 74.5% of the company’s shares.

ZSE Holdings reported no material contingent liabilities, finance leases, or pending litigation as of December 2024. The company’s borrowings stood at a modest ZWG 788,205, and capital expenditure commitments were capped at US$377,000. The listing costs totaled US$98,170.

In line with its conservative stance, the company’s dividend policy targets a payout of 20% of net profit, guided by free cash flow availability and regulatory requirements. “We aim to maintain consistency in dividends over a five-year period while safeguarding business sustainability,” the statement read.

The Board of Directors is chaired by Caroline Sandura and comprises seven non-executive directors and one executive director—CEO Justin Bgoni. Directors’ fees for 2024 amounted to ZWG$11.8 million. Director shareholding remains low, with only Deputy Chairman Bartholomew Mswaka holding shares (907,000), equivalent to less than 1% of issued capital.

The company’s senior management team includes Yolanda Chanakira as Finance Executive and Lyndon Nkomo as Head of Legal and Company Secretary, among others, signaling a well-structured governance framework.

With the establishment of ZSE Holdings as a listed parent company for both the ZSE and VFEX, the local capital market is poised for improved investor confidence and enhanced operational efficiency. The VFEX’s designation as a participant in the Victoria Falls International Financial Services Centre further bolsters Zimbabwe’s bid to attract offshore capital.

“The listing is not just a compliance exercise but a milestone that positions Zimbabwe’s capital markets for regional and global relevance,” said an analyst familiar with the development.