Finsec gets nod to coordinate US$1.6bn Dangote IPO in Zimbabwe

The Financial Securities Exchange (FINSEC) has received approval from the Securities and Exchange Commission of Zimbabwe (SECZ) to participate in the proposed Dangote Refinery initial public offering (IPO), paving the way for Zimbabwean investors to access the regional investment opportunity.

The approval follows FINSEC’s application and engagements with SECZ regarding its proposed role in facilitating Zimbabwean investor participation in the regional Depository Receipt (DR) initiative.

Under the arrangement, FINSEC has been recognised and designated as the participating distribution exchange for the Zimbabwean market, acting as a coordinator and distribution/order-routing platform for the proposed Dangote Refinery IPO through a Southern Africa regional Depository Receipt Programme with the Botswana Stock Exchange (BSE), which will act as the primary market for the regional issuance of the instrument.

The initiative follows negotiations undertaken by SADC stock markets through the Committee of SADC Stock Exchanges (CoSSE) to secure an allocation of the IPO for the region.

FINSEC now joins the majority of SADC stock exchanges participating in the regional structure, which provides investors with a regulated, safe and secure in-country facility through which they can access the investment opportunity.

The exchange said the initiative was consistent with its commitment to supporting innovative regional investment opportunities under the CoSSE framework while enhancing access to quality securities for Zimbabwean investors.

The development is expected to deepen regional capital-market integration and broaden investment opportunities for local investors by facilitating access to major securities offerings through regulated domestic market infrastructure.