Nov. 10 (Bloomberg) -- African Sun Ltd., a Zimbawean hotel operator, had its prices estimate cut 23 percent to $0.36 at Renaissance Capital.

The estimate was cut after the company said it wanted to raise $10 million to fund refurbishments and expansion. The “dilution impact is a bit of a concern,” Dzika Danha, a Harare- based analyst, said in a telephone interview today. “I still think this is the right thing to do now,” Dzika said, referring to the capital-raising.

To contact the reporter on this story: Janice Kew in Johannesburg at jkew1@bloomberg.net

Last Updated: November 10, 2009 03:25 EST