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Zeco set to list on stock exchange

ZECO Holdings, a company owned by businessman Philip Chiyangwa, plans to list on the Zimbabwe Stock Exchange (ZSE) in the next few weeks, businessdigest can reveal. Zeco Holdings is a result of a merger between Zimbabwe Engineering Company (Zeco) Ltd an

d Critall Hope.


Zeco Ltd was delisted from the stock exchange in 1998 after facing financial problems.


Zeco is estimated to be worth US$300 million while Critall Hope is believed to be worth US$100 million, according to valuation reports done last year by EL Bateman, an international engineering company. ZSE chief executive officer, Emmanuel Munyukwi, confirmed that Zeco had approached the stock exchange with plans to list.


“I can confirm that Zeco Ltd will list in the coming weeks. I cannot get into the details at this stage in time,” said Munyukwi.


When pressed for further information Munyukwi referred all questions to Chiyangwa. Businessdigest understands that Zeco Holdings’ prospectus will be ready by Friday next week. This will be followed by an Initial Public Offering (IPO).


TN Financial Services are the financial advisors in the deal while CBZ has been appointed the underwriters. Zeco also plans to list on the Botswana Stock Exchange early next year.


Efforts to get a comment from Zeco Holdings sole shareholder and proprietor Chiyangwa were fruitless at the time of going to press. Chiyangwa owns the entire equity of Zeco Ltd and Critall Hope through his Native Africa Investments stable. Sources say Chiyangwa wants to unlock Zeco’s value after failing to get potential suitors who could meet his asking price for the engineering giant.


Last month Chiyangwa rejected a US$60 million offer for Zeco from an unnamed American company saying the price represented a gross undervaluation of the company.


Chiyangwa also rejected a US$80 million offer by Zanu PF politburo member Dumiso Dabengwa. Dabengwa had bid for Zeco through a company called Duze Enterprises.


This was the latest in a string of unsuccessful bids for Zeco Ltd by Dabengwa since 1998 when Chiyangwa beat him to the post and took over Zeco Ltd. — Staff Writer.

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