Brainworks of Zimbabwe to raise USD25 million in JSE IPO

Brainworks of Zimbabwe to raise USD25 million in JSE IPO

Brainworks, a Zimbabwe-focused investment company said it plans to raise USD25 million through an initial public offering on the Johannesburg Stock Exchange.

The company said the JSE listing which is Africa’s deepest and most liquid stock market, is meant to improve access to capital; both debt and equity.

Zimbabwe meanwhile is struggling with a debt crisis, a fall in foreign exchange inflows, and acute shortages of cash that have forced banks to limit withdrawals.

Brainworks has not yet set the price for shares or how many would be sold in an initial public offering (IPO) due for July 21.

“It’s hard to give a price because when the shares list they will be in rand but we don’t know what the exchange rate will be at that time,” said Chief Executive Brett Childs.

The company was founded in 2011 with the focus of investing entirely in Zimbabwe. The group, headquartered in Mauritius, has stakes in hospitality, real estate, and financial services.