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CFX Rights Issue Opens

CFX Financial Services’ rights issue is set to open today after the company encountered delays in getting the required approval from the authorities earlier this week.

 

The $680 trillion fund-raising exercise was supposed to open yesterday but was pushed to today following a delay by the central bank in communicating with the Zimbabwe Stock Exchange (ZSE) on routine approval procedures.

After a meeting on Monday the ZSE had decided that it wanted to get the central bank’s views on the POSB being the underwriter for CFX’s rights issue.

The central bank did not respond until yesterday afternoon. Businessdigest understands that the ZSE received the letter yesterday.

“Please note that the RBZ does not object to POSB underwriting the CFX rights issue,” said the letter.

This means that CFX will open its right issue today, according to a senior official at the financial institute.

“All is now in order and the right issue will open tomorrow (today).”

POSB is set to increase its stake in the CFX through the uptake of some shares if the rights issue is not oversubscribed.

POSB already have an 18,20% stake in CFX and the rights issue is their change to increase the shareholding. POSB has in the past said that it is interested in increasing its stake in the financial institute.

The other shareholders in the bank are Premier Finance Group with 19,60% and Allied Financial Services group which has 17,04%.

The financial institute wants to use the part of the funds raise from the rights issue to expand its branch network. Another portion will be used as working capital for the bank. — Staff Writer.

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