Crocodile skins producer shifts focus to VFEX listing

LEADING crocodile skins producer, Padenga Holdings Limited, is seeking to re-list its shares onto the Victoria Falls Stock Exchange (VFEX) to allow the firm to raise capital in foreign currency from the market.

In an abridged circular released to its shareholders last week, Padenga said the intent to re-list on the VFEX would be done by way of introduction. Listing by way of introduction means listing shares already in issue on another stock exchange.

The crocodile skins and meat processor, which recently diversified its operations into gold mining, is listed on the Zimbabwe Stock Exchange (ZSE).

“The board of directors of Padenga considered the termination of Padenga’s ZSE listing, with the intent to re-list the company’s shares onto the VFEX by way of introduction.

“The migration of the listing from the ZSE to the VFEX is driven by the need to benefit from the incentives announced by the Ministry of Finance and Economic Development,” said the company.

The implementation of the proposed transaction is on condition among others that the firm’s board approves the listing of the company’s ordinary shares on the VFEX as well as securing all other necessary regulatory approvals as may be required.

Padenga is one of the world’s leading suppliers of premium quality crocodile skins and produces 51 percent of Zimbabwe’s annual wet-salted crocodile skin exports.

“The VFEX will allow Padenga to raise capital in foreign currency from a wider and deeper potential market, to expand existing business, acquire or establish new business and fund acquisitions for both the company and its gold mining subsidiary, Dallaglio Investments (Private) Limited,” said the company.

“This in turn would create new jobs, grow the economy and help Zimbabwe achieve its Vision 2030 targets.”

Under Vision 2030, the country targets to achieve an upper middle-income economy status and Zimbabwe has already started implementing the National Development Strategy 1, which will anchor the economy between now and 2025.

Padenga said the rationale of the proposed transaction would also be to enable existing shareholders to realise the United States dollar value of their holdings in the market, thus, allowing greater liquidity and broadening the shareholder base.

The proposed deal would also open Padenga to outside investment, improve its recognition, commercial standing and investor profile by enhancing capacity for repatriation of capital and dividends.

The firm said through its alligator farm operation in the southern United States, it has continued to grow its business by producing premium quality alligator skins.

In addition, Padenga’s Zimbabwean operation produces crocodile meat from its export-approved abattoir for sell to European markets. —chronicle.l.zw