HomeBusiness DigestRed Star IPO closes today

Red Star IPO closes today

THE Red Star Holdings initial public offer (IPO) closes today and the newest counter on the Zimbabwe Stock Exchange is expected to be listed on January 3.

Red Sta

r chief executive Denford Mberi told journalists at a media briefing this week that response to the IPO was positive and a target of more than $390 billion was expected to be achieved from corporate, institutional and individual investors through the offer of 325 500 000 new shares.

The wholesale and retail giant has to date been a wholly-owned subsidiary of ZSR Corporation but its success in recent years has brought about the decision to undertake a separate listing on the ZSE. This will be the first new listing on the local bourse in more than a year and the interest being shown is expected to be sustained after January 3.

The funds raised by the offer will facilitate a substantial upgrade of the company’s information technology infrastructure, as well as expansion and upgrading of the ever-growing branch network across the country.

“A major programme of IT upgrading is to be undertaken, improving risk management and reporting functionality, as well as affording realtime decision-making ability. Inventory tracking will be improved, customer care enhanced through point-of-sale improvements and efficiencies, while system enforced controls will be improved. This will increase the Red Star family’s status and standing in all markets,” said Mberi.

Mberi also hinted on possible regional expansion of the Red Star brands that may take place in the near future. – Staff Writer.

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