OK Zimbabwe secures vital $20 million lifeline amid challenging retail landscape

TROUBLED retailer, OK Zimbabwe has secured a financial lifeline pivotal to its revival bid under new management. The company, which competes in Zimbabwe’ retail sector against Pick n Pay, Spar and other smaller players, intends to raise as much as $30 million to revive its struggling retail operations.

- TAWANDA KAROMBO

OK Zimbabwe's battle for survival comes against the backdrop of wider wholesale and retail sector challenges that include monetary challenges and pricing distortions that are driving away suppliers.

For OK Zimbabwe, the plan for revival plan includes securing a financial package to turnaround the company. This month, OK Zimbabwe raised $20m through a rights offer, the company said Monday.

“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,’ said Margaret Munyuru, OK Zimbabwe company secretary. Shareholders in the company subscribed to 77% of the rights under offer, helping to raise $15.3m. The remaining 23% was snapped up by the scheme’s underwriters, who put in $4.6m. The OK Zimbabwe rights offer opened July 21 and closed August 4, the company said.