In what must be one of the most optimistic flotations of the year, Lonrho, the investment vehicle once owned by Tiny Rowland, is seeking a separate listing for its Zimbabwean assets.

The company confirmed yesterday that it plans to list LonZim, a Zimbabwean investment fund, on London’s Alternative Investment Market by the end of this month. The announcement comes a week after the Zimbabwean parliament passed a law that would allow the Government to seize control of any foreign-owned company.

The public offering (IPO) of LonZim was greeted with scepticism by City dealers yesterday. “It’s quite staggering that they would try this now,” one said. “They must have balls.”

The London and Rhodesian Mining and Land company has operated in the region for nearly a century. Roland “Tiny” Rowland became chief executive in the 1960s and began a rapid expansion. It was broken up in the 1990s to pay off debt, with the African mining assets becoming Lonmin, a FTSE 100 company. Lonrho has continued to acquire infrastructure, property and transport assets in Africa.

It announced the acquisition yesterday of two more companies in Zimbabwe from an offshore vehicle called Blueberry. Celys is a telecoms and IT company that prints cheque-books and has a Nokia concession in the country; Gardoserve makes chemicals for the textiles industry.

These assets will be transferred to LonZim, which has raised about £32 million from backers including James Packer, Australia’s richest man. It hopes that the IPO will take its war chest to £100 million.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive