Zimbabwean tycoon Ken Sharpe’s real estate holding company, West Properties Holdings (WestProp), failed to sell any of its shares on its first day of trading on the Victoria Falls Stock Exchange (VFEX) on May 9.
This came after the company listed 30 million ordinary shares on the VFEX on May 5 but only managed to raise $3.3 million of the $30 million targeted for the listing. The opening price for its shares was $10, and it closed at the same price.
Although WestProp did not manage to sell any shares on the local exchange during the trading session, it was not the only company to do so. In fact, out of the eleven firms listed on the exchange, five others also failed to sell any shares.
Despite the lackluster debut, Sharpe the CEO of WestProp remains optimistic about the company’s future. He stated that the company is now valued at $300 million after the VFEX listing and that investors should not underestimate the company’s potential.
“We will be coming back to the market with a fresh round of preference shares,” he said.
Sharpe has established himself as a major player in Zimbabwe’s real estate industry, thanks to his success in acquiring multiple thriving businesses, including Augur Investments and West Food Distribution.
Under his leadership, WestProp, a leading property developer, has collaborated with the City of Harare to revamp several commercial centers in the area, such as the Harare Sunshine Bazaar, Mbudzi Peoples Market, and Shawasha Mall in Mbare.
WestProp’s listing on the VFEX was initially scheduled for April 28 but was delayed due to a legal challenge that claimed the company had not disclosed all of its litigation cases.
While the challenge has since been resolved, some of WestProp’s key assets are still under dispute, and this raises questions about the accuracy of its valuation as a publicly traded entity.
This uncertainty surrounding its assets casts a shadow on its prospects as a listed company.