Brainworks becomes first Zimbabwean firm to list on the JSE

Stephen van Coller

Brainworks Limited has been listed in the Equity Investments Instruments sector on the main board of the JSE. Brainworks is the first Zimbabwean company to have a primary listing on the JSE and the 16th company to list on the exchange this year.

“We are confident that our strategy of listing on the JSE will prove sound and that international and Zimbabwean investors will view Brainworks as a vehicle to access our excellent asset portfolio and participate in the opportunity that is Zimbabwe. With approximately 38% of group revenue generated in hard currency, through our hospitality division, a large property portfolio and our focus on micro finance, banking and insurance we are well placed to benefit in a changing economic environment,” says Brett Childs, CEO of Brainworks about the listing.

The Equity Investment Instruments subsector has a market capitalisation of nearly ZAR73 billion and Brainworks brings the number of companies listed in this sector to 10.

Brainworks Limited is a Mauritian registered investment holding company, with its investment base focused on the Zimbabwean hospitality, real estate, financial services and logistics sectors. Its current investments include controlling stakes in two companies listed on the Zimbabwean Stock Exchange (ZSE): African Sun, a hospitality management company and Dawn Properties, a real-estate investment holding, development and property consulting services company.

The JSE offers foreign investors a secure and transparent entry point into Africa and provide the companies who do business there with a liquid platform to raise further capital to fund their expansion. The exchange also favours dual or cross listings, wherein debt or equity is listed simultaneously on the JSE and on a local market. This assists companies from other African countries to gain access to a much larger capital pool and trade in a more liquid environment, while still allowing local market participation.