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Brainworks Ltd lists in Johannesburg

Brett Childs, chief executive of Brainworks, said that the company would now look to market a convertible loan note.
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Brainworks listed in Jo'burg but its business is in Zimbabwe

Brainworks Ltd (JSE:BWZ) has gone ahead with its listing on the Johannesburg Stock Exchange even though it has had to redraw its financing plans.

The hospitality and finance conglomerate is the first Zimbabwe-focused company listed under the JSE’s Equity Investment Instruments (EII) sector.

Brett Childs, chief executive of Brainworks, said that the company would now look to market a convertible loan note.

The intention was to raise US$25mln in the listing but a combination of the political uncertainty in Zimbabwe (with elections next year) and a ‘wait and see’ attitude among investors scuppered the plan, said Childs.

Mauritius-domiciled and structured as a holding company, Brainworks’ stakes currently include 57.7% in hotel and casino group African Sun, which is listed on the Zimbabwe Stock Exchange (ZSE).

The group also owns 66.8% of property group Dawn Properties; a 31.1% stake Zimbabwe microfinance provider GetBucks; 49% of GetCash, a mobile money transfer platform and all of life insurance group GetSure.

Revenues in 2016 were US$48mln and underlying earnings US$ 7mln.

“We aim to be the major player in Zimbabwe in the markets we have selected and hospitality in particular,” said Childs.

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