[2008-01-02]  Zeco Holdings’ listing on course
THE listing of Zeco Holdings, owned by business-man Mr Phillip Chiyangwa, is on course, with the Zimbabwe Stock Exchange considering its papers.
The firm is expected to start trading on the domestic bourse early next year. “Zeco will certainly be the next Zimbabwe Stock Exchange candidate,” official sources at Zeco Holdings said.
The company will have under its name, the Bulawayo-based Zimbabwe Engineering Company, and Crittal Hope, a steel and fabrication company based in Harare.
Mr Chiyangwa owns the two companies through his investment vehicle, Native Investments Africa Group. CBZ Holdings will underwrite the initial public offer (IPO), meaning if the IPO is undersubscribed, CBZ will consequently take a stake in the mechanical engineering giant.
Papers outlining the deal have already been submitted to the ZSE and were being scrutinised early this week. ZSE chief executive Mr Emmanuel Munyukwi confirmed the developments, but could not go into detail.
TNFS Financial Services are the financial advisers of the IPO. No comment could be obtained from the firm’s Managing Director, Mr Ben Wekare, who was said to be out of the office.
Zeco, established in 1964 under the ownership of Thomas Meikle, went into provisional liquidation in 1995 due to operational difficulties.
It operated as Resco before it was rebranded in 1980. In its heyday, the company managed to build over 7 000 wagons for local companies, including the National Railways of Zimbabwe, and other regional railway operators.
It manufactured about 90 percent of NRZ wagons and locomotives and 100 percent of Zimbabwe Iron and Steel Company's requirements.
Zeco also built wagons for utilities in Zambia, Tanzania, Mozambique, Ethiopia and Kenya, making it one of the biggest players in Africa's integrated steel industry.



Source: (C)THE CHRONICLE 2007