Pinnacle plans ZSE listing

Kuda Chikwanda



PINNACLE Property Holdings plans to list on the Zimbabwe Stock Exchange (ZSE) in June to raise US$100 million for expansion projects, businessdigest
> can reveal.


Pinnacle’s major shareholder, Native Investments Africa (NIA) decided to list the company following the successful initial public offer (IPO) of Zeco Holdings, another company owned by the group.


NIA’s executive chairman, Phillip Chiyangwa, is understood to have informed his financial advisors, TN Financial Services, to start preparing for the IPO which is scheduled to kick-start sometime in April.


CBZ Bank will underwrite the IPO.


“Chiyangwa has been encouraged by the success of Zeco’s IPO. TN Financial Services has just started looking into the IPO,” said a source close to the deal.


The Zeco Holdings IPO was oversubscribed by one and half times and raised just over $32 trillion. Zeco had sought to raise $20 trillion from the IPO.


According to the sources, Pinnacle plans to issue an IPO for a stake between 15% and 20% of the company’s issued share capital.


Documents seen by businessdigest show that Pinnacle was valued at US$256 million early last year by CB Richard Ellis.


However, the company’s net worth has since grown to just over US$500 million on the back of a diversification exercise that saw its focus shifting from construction to land development and tourism. The company is also into brick, tile and timber manufacturing.


Chiyangwa confirmed the planned listing but could not shed more light.


“Yes Pinnacle will list and we have said that before but I would rather be silent on when that will happen. I am prepared to talk about Zeco’s results for the moment and not Pinnacle,” he said.


TN Financial Services managing director, Tawanda Nyambirai, promised to respond to questions but had not done so at the time of going to press. CBZ managing director, John Mangudya, was said to be in meetings.


Pinnacle has a steady cash flow from high value transactions on sales of housing, commercial units and developed stands.


Most of this cash has been channelled onto the ZSE where Pinnacle holds shares in listed companies.

Top