Edgars shareholders approve VFEX listing
EDGARS Stores Limited is set to be the first retail clothing entity to list on the fast-expanding Victoria Falls Stock Exchange (VFEX), after shareholders overwhelmingly approved the delisting from the Zimbabwe Stock Exchange (ZSE).
The approval was granted at an Extraordinary General Meeting of shareholders held last Friday.
In a notice, the firm said the controlling shareholders, Annunaki Investments (Private) Limited and Bellfield Limited and their associates were excluded from voting.
Early this year, Edgars revealed its intention of migrating to the United States dollar-denominated VFEX.
With shareholders giving the nod to the proposal, it is on course to become the first clothing entity to list on the VFEX.
The rationale for Edgars’ migration from the ZSE to the VFEX is to enhance accessibility to US dollar capital and expand the investor base.
Edgars will gain an enhanced capacity to raise capital in foreign currency, supporting the company’s foreign currency needs.
According to the circular on migration timelines, the last day of trading of Edgars shares on ZSE is planned for March 27. The firm expects to make its debut on April 8.
Edgars engages in the retail of clothing, footwear, textiles, and accessories in Zimbabwe, and the company operates through six segments: Edgars Stores Retail, Jet Stores Retail, Manufacturing Carousel, Micro Finance Club Plus, Corporate Head Office, and Financial Services.
In addition, it provides microfinance loans to the lower — to middle-income customer group.
In a notice announcing the Extraordinary General Meeting, company secretary, Chipo Mafunga said there was a 100 percent approval for “the removal of the company’s shares from the Main Board of the Zimbabwe Stock Exchange through a voluntary termination of the listing on the Zimbabwe Stock Exchange, in terms of Section 11 of the ZSE Listing Requirements.”
Another 100 percent approval was for the listing of the Company’s shares on the VFEX following the bourse Listing Requirements.
Shareholders also gave a 100 percent nod for “Directors to do any and all such things as may be necessary to give effect to the above resolutions and to ratify any and all such actions already taken by the Directors in connection therewith.”
The bourse is a subsidiary of the ZSE, established to kick start the Offshore Financial Services Centre (OFSC) earmarked for the special economic zone in Victoria Falls. It is part of efforts to attract global capital and restore foreign investor confidence in Zimbabwe’s capital markets and help companies raise capital in foreign currency.
Being a US dollar-denominated exchange, the VFEX enables businesses to raise capital in foreign currency, at a time when the country is still battling forex shortages.
Investors who participate in the VFEX benefit from the ability to move their capital and dividends in and out freely, low transaction costs, tax incentives that include a five percent dividend withholding tax for foreign investors and exemption from capital gains withholding tax for all investors and minimal currency risks.-chronicle
