The Zimbabwe government and stockbrokers in the nation’s stock market agreed to halve their combined stake in the bourse to 50 percent before an initial public offering.

The 50 percent share of the Zimbabwe Stock Exchange will be valued at $5 million, according to a memorandum of understanding signed today by Finance Minister Patrick Chinamasa and ZSE Chairwoman Eve Gadzikwa. The government will reduce its 32 percent holding to 16 percent, while stockbrokers will cut their ownership to 34 percent from 68 percent, according to the agreement, handed to Bloomberg News in the capital, Harare.

The exchange will seek a technical partner, which will be awarded a 20 percent share in the company, and sell the rest in a listing, according to the document.

Zimbabwe’s bourse, started in 1947, has a market capitalization of $5.5 billion, according to Harare-based IH Securities. The 73-member Zimbabwe Industrial Index has slid 8 percent this year, the worst performer among 14 African benchmark gauges monitored by Bloomberg.

Bloomberg