OK Zimbabwe seeks $30 million capital raise amid financial struggles

ZIMBABWE’S largest but struggling retail operator, OK Zimbabwe, is seeking to raise $30 million (around R560m), in capital to strengthen its balance sheet, enhance working capital and to support its turnaround after profitability amid a worsening economic environment.

- TAWANDA KAROMBO

OK Zimbabwe also runs Bon Marche and some Food Lover's outlets in the country. Recently, the company sacked its CEO and other officials, and brought back retired executives to run its operations in the interim.

“As part of its turnaround strategy, the troubled retail operator will undertake a capital raise of up to $30m to bridge and stabilize the company’s financial position,” it said on Wednesday.

“The capital raise will be a combination of a rights issue, private placement and debt instruments,” said Margaret Munyuru, company secretary of OK Zimbabwe.

The funds will be used to “ensure smooth operations and strengthen the company’s balance sheet and liquidity position.”

After experiencing “significant operational and financial difficulties arising from both endogenous and exogenous factors, driven by a challenging operating environment”, OK Zimbabwe has seen its financial performance nose-dive.