Zimplow starts trading on VFEX
Diversified engineering firm Zimplow Holdings Limited started trading on the Victoria Falls Stock Exchange (VFEX) today (Monday) following a successful migration from the Zimbabwe Stock Exchange (ZSE).
A total 4 000 shares traded at US$0.04.
The counter becomes the 14th issuer on the US dollar-denominated exchange which was operationalized three years ago.
Its migration comes at a time the company is looking at expanding its capacity to meet both the domestic and export market demand for its products, thus enhancing foreign currency earnings.
In a previous interview, chief executive officer Vimbayi Nyakudya indicated the move would help the company and its shareholders realise their true value of investment, as it has remained undervalued on the ZSE.
He added the transaction was also a move away from the currency distortions on the main bourse the ZSE.
“There is a huge disparity in the valuation on the stock exchange and the actual valuation of Zimplow,” he said.
The migration to the VFEX is expected to position the group to easily penetrate the regional market, and raise capital in hard currency for its capacity expansion projects.
Speaking at the official listing ceremony in Victoria Falls last week, group chairman Godfrey Manhambara said the migration also serves to attract quality international investors.
“The migration to the VFEX is an opportunity for the group to demonstrate its performance in the critical sectors of the economy, that is, agriculture, mining, infrastructure, and logistics.
“Furthermore, it will enable the group to embark on capital-raising initiatives in foreign currency thereby boosting its efforts to acquire new OEMs (Original Equipment Manufacturers) with respect to its three clusters.
“The group seeks to harness offshore settlement options on the VFEX, thereby enabling investors to repatriate their dividends in a seamless manner, whilst effectively managing the foreign currency risk that is inherent in holding shares as a foreign investor,” he said.
Manhambara added the group was also dedicated to making a significant impact in driving economic progress, in line with National Development Strategy 1 and Vision 2030.
“In this regard, our steadfast commitment resides in actively embracing and adapting to the rapid trajectory of innovation and technology,” he said.
Zimplow was listed on ZSE in 1951 and since then, has gone through a series of strategic developments.
During the year under review, the group established two business units namely TPS and Valmec. TPS is a business unit within the Mining & Infrastructure Cluster. This business unit is an accredited engine parts supplier and provides a plethora of products and services such as industrial filtration, lubricants, ground engaging tools (GET), and servicing and repairs of earthmoving equipment.
Valmec on the other hand is part of the Agriculture Cluster carrying on the business of the provision of entry-level tractors and affordable second-tier range of implements to emerging farmers.-ebusinessweekly
