SAGIT Financial Holdings (Pvt) Ltd has concluded a rights issue to raise $4 billion from the market.
ts of Sagit Stockbrokers, Sagit Advisory Services, Sagit Asset Management and Sagit Capital Finance (Pvt) Ltd.
The proceeds of the rights issue, which opened on February 19 and closed on February 25, will be used to finance Sagit’s growth strategy.
The undertaking of the rights issue was in response to the opportunities that abound in the financial market, now characterised by a requirement to have better capitalised financial institutions, as advocated by the Reserve Bank of Zimbabwe.
It was also a result of foresight planning by the group which intends to solidify its firm hold in the financial services sector through acquiring a controlling stake in a registered banking institution.
Apart from its current operations, which cover the areas of equity trading, asset management, investment banking and structured finance, Sagit intends to diversify into short-term insurance by acquiring a stake in an insurance entity.
Negotiations are already at an advanced stage.
In June 2002, a consortium of indigenous entrepreneurs, represented by Wisper Gwena acquired the local shareholding of Sagit, which was then called RAD Holdings.
At that stage, 33% of the shares were held locally while 67% were held offshore.