HARARE – Zimbabwe Stock Exchange listed retail giant OK Zimbabwe Limited has successfully raised US$20 million from its renounceable rights offer, achieving a 100% subscription rate.
The capital raise, which ran from 21 July to 4 August 2025, saw 76.94% of the shares taken up by existing shareholders and the remaining 23.06% acquired by underwriters in line with the underwriting agreement.
The company said proceeds from the rights offer will be used to partially settle legacy creditors, strengthen working capital, fund capital expenditure programmes, and unlock fresh supplier support.
Company filings from February showed that OK Zimbabwe had outstanding obligations to suppliers amounting to about US$30.34 million, with creditor balances making up a substantial share of this debt.
In addition to the capital raised, OK Zimbabwe expects to generate a further US$10.5 million from the disposal of selected immovable properties.
The company is currently reviewing offers for the identified assets, with discussions ongoing to ensure the transactions align with its strategic objectives and maximise shareholder value.
The planned property disposals comprise the OK Mbuya Nehanda, OK Gweru, OK Glen View, and OK Malvern supermarkets. Alongside these four retail outlets, the company intends to sell a warehouse as well as two undeveloped commercial stands.
“The Board expresses its appreciation to shareholders for their continued support and to the underwriters for their commitment to the success of the capital raising exercise,” said company secretary Margaret Munyuru in a statement.
“The Board also wishes to advise shareholders that the process relating to the property disposal programme remains ongoing.
“The Company is currently receiving and evaluating offers for the identified properties, with discussions underway to ensure that any transactions concluded are in the best interests of shareholders and are consistent with the Company’s strategic objectives.
“The Board remains focused on executing the Company’s strategic initiatives and delivering value to shareholders.”
OK Zimbabwe and other retail companies have been facing challenges due to the volatile economic environment characterised by local currency instability and unfair competition with informal traders who sell cheap products while not paying taxes.
Other retail supermarkets such as Food Lover’s, N Richards Group, Spar, and Pick n Pay have closed down shops across the country.
