Westprop IPO listing fails dismally with less than US$300k subcribed on US$40m target

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A bid by Harare-based property company, Westprop Holdings, to list on the Victoria Falls Stock Exchange, failed dismally when the company raised less than 10% of the amount it was seeking.

Westprop Holdings, whose principal directors are Kenneth Raydon Sharpe, Oleksandr Sheremet and Tatiana Aleshina, raised only US$14 050 instead of US$10 million after selling 1 405 out of one million ordinary shares.

It raised a further $276 590 from 55 318 preference shares when it aimed to raise US$30 million. A further 600 000 preference shares were taken up by the underwriter. The company raised a total of US$3 290 640 against a target of US$40 million

Westprop Holdings published its initial public offer on 28 March intending to list on the Victoria Falls Exchange (VFEX), which is US-dollar denominated, on Friday, 28 April.

Westprop said it was going back to the Vfex to ask for an extension of the share offer.

The listing of Westprop on the VFEX was being challenged by a group of investors represented by Mutumbwa, Mugabe and Partners.

The investors said Westprop had not published all the litigation cases against the company in its prospectus and should therefore not be allowed to list.

Westprop, through its lawyers, Scanlen and Holderness, dismissed the challenge saying it showed lack of basic understanding or knowledge of simple corporate and commercial law matters.

The Securities and Exchange Commission of Zimbabwe, however, ruled that Westprop should have included the litigations cited by those opposing its listing so that investors could make an informed decision.

The commission said VFEX should ask Westprop to make a supplementary litigation report with all the necessary disclosures before listing.