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OK Zimbabwe Limited has successfully raised US$20 million through a fully subscribed renounceable rights offer, a key move in its strategy to settle mounting debts and strengthen its financial position. The capital injection, supported by strong shareholder participation and underwriting, comes as the retailer seeks to address its US$30.34 million debt owed to suppliers as of February.
The rights offer, which ran from July 21 to August 4, 2025, saw shareholders take up 1.41 billion shares worth US$15.38 million, accounting for 76.94% of the total shares available. The remaining 424 million shares, valued at US$4.61 million, were subscribed by underwriters, ensuring the offer’s full subscription.
By Gamuchirai Mapako
In a statement, OK Zimbabwe described the capital raise as a critical step toward financial recovery.
“The rights offer was fully subscribed through a combination of shareholder take-up and shares taken up by the underwriters in accordance with the underwriting agreement,” the company said.
The US$20 million forms the first phase of a larger US$30.5 million fundraising plan aimed at clearing creditor obligations and revitalising operations. The second phase involves selling select company-owned properties to raise an additional US$10.5 million.
“Proceeds from the rights offer will be applied towards partial settlement of legacy creditors, supporting the company’s working capital and capital expenditure requirements and unlocking fresh supplier support,” OK Zimbabwe stated.
The company confirmed it is currently evaluating offers for the identified properties, ensuring any transactions align with shareholder interests and strategic goals.
OK Zimbabwe thanked shareholders for their confidence and underwriters for their role in the successful capital raise. The board reiterated its commitment to strategic initiatives that drive long-term growth.
The funds come at a crucial time for Zimbabwe’s retail sector, which faces pressure from declining consumer spending, high operating costs, and stiff competition. For OK Zimbabwe, the capital boost provides much-needed relief to stabilise supplier relationships, settle debts, and reposition for future growth.
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