• Promoter intends to sell a total of 255,323,000 REIT units at ZWL 28.00 per unit
  • REIT is offering public a 35.5 % stake in the 719,323,000 total shares
  • Minimum number of units is now 1000 units at ZWL28, translating to ZWL28,000

In consideration for the promotion of financial inclusion, Tigere has advised investors that the minimum lot size for the Tigere REIT IPO for all retail investors whose applications are received via the C-Trade and ZSE Direct platforms is now 1,000 units instead of the 5,000 units that apply for investors who make direct applications.

When the REIT listing was first announced, the minimum number of units was 5000. Just three days before the IPO close, Tigere adopted a more “inclusive approach” by reducing the minimum offer to 1000 units. Investors have until 18 November 2022 to subscribe for units.

Considering the Fund’s seemingly last-ditch effort to pull in retail investors, it implies that the unit may be undersubscribed. However, that assertion can only be proved or disproved on the 21st of November when the results of the offer are published.

The subsequent listing of the Tigere REIT units on the ZSE will follow on the 23rd of November.

Tigere’s internationally ubiquitous investment security is expected to add some diversity to Zimbabwe’s fragile investment landscape. The Zimbabwean capital markets need depth in terms of scope as the universe of investible assets is limited to stocks and government-issued fixed-income securities and we have a gigantic housing crisis with over two million citizens without access to affordable housing.

The government estimates that the backlog of the housing stock of anywhere between 1.5 to 2 million housing units.

The introduction of REITs to the investment landscape is expected to address these issues, ensuring that once these investment vehicles are unlocked, there will be the necessary funding needed to develop more housing units to meet the current backlog.

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