GetBucks listing fails to excite market

HARARE - The listing of microfinance institution GetBucks Zimbabwe (GetBucks) on Friday failed to excite the market after the Zimbabwe Stock Exchange main industrial index lost 1,13 percent to close the week at 109,88 points.

The local bourse — on a consistent slump and has lost close to $2,1 billion since the July 31, 2013 elections — saw no counter trading  in the positive territory as heavyweights BAT Zimbabwe, Innscor and SeedCo were unchanged at $12,20, $0,2400 and $0,8375 respectively.

On the other hand, the mining index was unchanged at 21,74 points.

Mining giants Bindura, Falgold, Hwange and RioZim maintained previous price levels at $0,0128, $0,0050, $0,0300 and $0,1040 respectively.

Meanwhile, GetBucks which became the first company to list on ZSE through Initial Public Offer (IPO) in a dollarised environment started trading at $0,0342 per share but unfortunately did not register any trades despite listing 1 093 567 251 shares.

This comes after the financial technology firm had witnessed its IPO being snubbed by investors resulting in the underwrite — DFB Capital — snapping up 97,71 shares of the $3,2 million the company wanted to raise.

GetBucks operations director, Gerri Fourie, told delegates attending the listing in the capital that the company’s strategic objective was to retain and grow its market share through a sustainable business model that offers competitive interest rates while managing its cost of funds.

Fourie expressed optimism that the listing would do much to attract focused and permanent capital and unlock shareholder value.

“With a licence from the RBZ to operate a deposit-taking microfinance institution dedicated to supporting low-income individuals and SMEs, GetBucks intends to introduce banking products such as saving accounts for individuals, as well as a debit card that will enable customers to transact electronically and have access to other financial services,” he said.

Since commencing operations in 2012, as a credit only microfinance institution, GetBucks has over a short period of time grown into one of the leading microfinance lenders in Zimbabwe with a current loan book of over $11 million and a footprint of 14 branches in all the major cities and towns.

Reserve Bank of Zimbabwe (RBZ) director for bank supervision division Norman Mataruka applauded GetBucks for listing on ZSE at a time when several companies have either been suspended or delisted from the local bourse due to undercapitalisation and gross misconduct. 

Some of the companies that have been suspended or delisted from ZSE in the past few years include Tractive Power, Interfresh Holdings, PG Holdings, Apex Corporation, Cairns Holdings, Celsys, Chemco Holdings, Gulliver, Interfin, Phoenix Consolidated, Steelnet, Trust Holdings and Pelhams among others. 

“Through the listing, GetBucks will now be regulated by both the ZSE and RBZ which will result in the company having stronger governance structures and increase confidence in the microfinance market,” he said.

Mataruka noted that the forthcoming amendments to the Banking Act will further buttress the responsibilities of the board and senior management in respect of good corporate governance and risk management systems.

“We commend the board of GetBucks for taking the bold step and showing confidence in our capital markets and we encourage other companies to emulate GetBucks in taking advantage of our capital markets. The capital market is currently underutilised as a vehicle for mobilising financial resources,” he said.

Comments (2)

It is reported elsewhere that Mr Masiyiwa of Econet lost $354million in 2015 in market value. Why would I invest in this IPO in a stock market which lost circa $2 billion in value in 2015 alone? No wonder there were no takers of these shares.

Investor - 18 January 2016

It is reported elsewhere that Mr Masiyiwa of Econet lost $354million in 2015 in market value. Why would I invest in this IPO in a stock market which lost circa $2 billion in value in 2015 alone? No wonder there were no takers of these shares.

Investor - 18 January 2016

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.
 
Enter the three characters from the image on the right. This helps prevent automated 'bots' from submitting spam to the site. This field is NOT case-sensitive. If the characters are a bit hard to see, try refreshing the code by clicking the image.