Equities Market
FINSEC provides an automated platform for the issuance, listing, trading and settlement of equity instruments. These instruments can be issued and traded privately or through public platforms.
Primary Market
Initial Public Offer (IPO)
This is a public offering in which shares of a company are sold to the public. It involves the production and publication of a prospectus, which must be approved by both FINSEC and the Securities and Exchange Commission of Zimbabwe. The prospectus will contain details of the company’s management, products/services, operations and both historical and projected financials.
Private Placement
This is when securities/shares in a company are offered to prospective shareholders through private arrangements. This listing method involves issuance of additional shares to raise capital.
Secondary Market
Listing by Introduction (LBI)
Listing by Introduction (LBI) allows a company to apply for listing without the conduct of an initial public offering (IPO) prior to the initial listing of the company’s securities on FINSEC. It applies to an application for listing of securities that are already issued or securities that will be issued upon listing, where no public offering will be undertaken. When a company chooses to list by introduction, a pre-listing statement shall be published. This pre-listing statement is not an invitation to potential investors to subscribe for shares in the company, but is issued for the purposes of providing information to the public about the company. Investors will be able to buy shares in the secondary market trading of the company after the listing. Listing by introduction on FINSEC helps to facilitate price discovery and market-value realisation, for Over-the-Counter traded and similar securities. Through market demand and supply forces together with an efficient information processing mechanism, buyers and sellers of securities listed on FINSEC are assured of transacting at fair prices.
Public Trading
When a company initiates the IPO process, a very specific set of events leading to the listing on FINSEC occurs. These events are usually undertaken through the guidance of the company’s Nominated Advisors who will coordinate meetings involving the various parties to the listing transaction. Other parties involved may include the Sponsoring Broker, Transfer Secretary, Independent Financial Advisor and Legal Advisor.
