HARARE – The government has demutualised the Zimbabwe Stock Exchange (ZSE) in a move that will result in the local bourse being owned by private investors.

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ZSE

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Under the demutualised ZSE, the government will reduce its shareholding from the current 32 percent to 16 percent while stockbrokers will offload their stake from 68 percent to 34 percent.

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Private investors are expected to get a 20 percent shareholding with the public acquiring 30 percent shares.

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Securities Exchange Commission of Zimbabwe Chairperson, Mrs Willia Bonyongwe said the transformation of the equities market into a private company will increase foreign investor participation on listed counters.

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“There will be excitement in that perspective and it is something that will boost the value of shares,” said Mrs Bonyongwe.

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The Minister of Finance and Economic Development, Patrick Chinamasa said the demutualisation of the ZSE will provide a diversified shareholding structure aimed at ensuring that the market capitalisation or total value of shares will reach US$100 million in the next three years.

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“As the government, we are optimistic that we shall attain our intended goals,” he said.

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Demutualisation also entails the separation of ownership of the exchange from the management in line with global capital market systems.

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The process is aimed at transforming the exchange from a statutory body into a profitable public listed company.