OK Zim Shareholders Approve Key Capital Raise

Zim Now Reporter

OK Zimbabwe Limited has secured shareholder approval for a sweeping set of strategic resolutions aimed at repositioning the retail giant for future growth, following an Extraordinary General Meeting held on July 17, 2025.

All nine resolutions tabled during the EGM were unanimously passed without amendments, signaling strong shareholder confidence in the company’s direction.

The resolutions include measures to increase share capital, approve a rights offer, dispose of non-core assets, and restructure the company's operations.

The company’s authorised share capital will now be increased, following the approval of a special resolution enabling amendments to OK Zimbabwe’s Memorandum and Articles of Association. This paves the way for the upcoming rights offer that was also approved.

The rights offer will see the company raise up to US$20 million to recapitalise operations, improve liquidity, and strengthen its balance sheet.

Shareholders gave the green light for the renounceable rights offer to be underwritten by a consortium of financial institutions, including Old Mutual Life Assurance Company and Imara Capital Finance.

A key resolution authorises directors to allot and issue any unsubscribed shares to selected shareholders or investors, should current shareholders not fully subscribe to the rights offer. This includes allowing participation by foreign investors, particularly those in the United States, under the United States Securities Act of 1933.

Additionally, shareholders approved the listing of the new shares on the Zimbabwe Stock Exchange and, where necessary, international exchanges, subject to regulatory clearance.

In a bold restructuring move, shareholders approved the disposal of non-core assets and business units. This includes the potential sale of specific real estate holdings and business divisions no longer aligned with the company's strategic focus.

OK Zimbabwe also received approval to restructure its business operations. The plan includes transferring some operations and assets to newly created or existing subsidiaries, giving the group greater operational flexibility and tax efficiency.

The company will amend its Articles of Association to align them with the new resolutions, including those related to the restructuring and capital raise.

In a statement issued after the EGM, Company Secretary Margaret Munyuru said, “The board is grateful for the overwhelming support from shareholders. These resolutions give OK Zimbabwe the flexibility and resources needed to position the business for sustainable growth and value creation.”