Launch of a new private fundraising platform for companies


The Chronicle

Enacy Mapakame, Harare Office

THE Financial Securities Exchange Limited (FINSEC) introduces the FINSEC Private Markets, a private finance market for companies at every stage of their development.

This follows overwhelming demand for private debt and private equity funding on the GEM (Growth Enterprise Market) portal, which launched in 2019.

Despite the increased demand for funding on the GEM portal, which is designed to help small businesses raise capital, it emerged that some of the applicants preferred not to be immediately made public upon signing up, and instead opted for funding. private while undergoing incubation before possible listing. .

“In response to this demand for private debt and private equity financing, FINSEC is launching FINSEC Private Markets, an innovation tailored to the demands of growing businesses and emerging local brands,” said FINSEC Managing Director Garikayi. Munema, in a press release.

“FINSEC Private Markets is a wholly owned and operated unit of the exchange and is a private funding market for companies at all stages of development, including start-ups; phases of growth, maturity and decline.

“The platform offers businesses value discovery; output options; pre-IPO (initial public offering); IPO and listing journey.

“FINSEC Private Markets is accessible to qualified institutional investors (QII); High Net Worth Individuals (HNI), Development Finance Institutions (DFI); and local or international private investors looking for alternative investment opportunities with growth potential,” he said.

FINSEC launched the GEM Portal in 2019, an online digital platform connecting the demand and supply of capital through an exchange infrastructure.

According to FINSEC, the GEM portal has received a lot of support from potential financiers and investors, including the United National Capital Development Fund (UNCDF) which provided financial and technical support to set up the platform and conduct preliminary research on the demand for capital by growth firms.

To date, over one hundred and fifty applications have been received through the GEM portal. One commercial bank, seven financial advisory firms and four institutional investors registered as participants.

Now, the introduction of private FINSEC markets is the panacea for companies looking for patient capital.

“On the other hand, investors gain access to filtered and risk-free investment opportunities using the exchange infrastructure.

“Private FINSEC markets will also bring together and leverage expertise across the capital raising and investment value chain. These include financial advisors, investment analysts and legal advisors to provide support for companies to raise capital,” Mr. Munema said.

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