Zimplow delists from ZSE to join VFEX
DIVERSIFIED manufacturer, Zimplow Holdings Limited, is set to list in the Victoria Falls Stock Exchange (VFEX) after announcing its intention to delist from the Zimbabwe Stock Exchange (ZSE).
The USD-denominated VFEX is a subsidiary of the ZSE launched in 2020 as an off-shore-biased financial services centre.
The move is part of Zimbabwe’s efforts to attract global capital and restore foreign investor confidence in the country’s capital markets while helping companies to raise capital in foreign currency.
Its setting is largely expected to go a long way in buttressing the Victoria Falls Special Economic Zone.
In a cautionary statement to shareholders dated 04 May 2023, Zimplow group company secretary Mrs Sharon Manangazira said the board has approved the delisting of the company from ZSE.
Zimbabwe Stock Exchange Limited (ZSE)
“The directors of Zimplow Holdings Limited wish to advise all shareholders and the investing public that the board has approved the delisting of the company from the Zimbabwe Stock Exchange, immediately followed by its listing on the Victoria Falls Stock Exchange (the “Transaction”),” she said.
“Further details of the transaction will be provided to shareholders once all regulatory processes have been finalised.
“Shareholders are, therefore, advised to exercise caution and consult their professional advisers when trading in the company’s shares.”
VFEX closed the year 2022 on a higher note with market capitalisation at US$411 million as the bourse continues to attract high-end firms in mining, manufacturing, and financial services. As of 23 December, VFEX’s market capitalisation was US$411 million.
The rapid growth of VFEX in the last quarter of 2022 brought excitement to the financial services sector, injecting much-needed confidence and cementing the country as a safe investment destination. Interest has grown in leaps and bounds with more firms showing keen interest in coming on board.
The exchange has the potential to become a game changer in a country endowed with vast mineral resources as it trades in hard currency and, therefore, a good funding mechanism for the mining sector, which is seen as an enabler for economic growth.
Government has come up with a raft of incentives in order to promote listings on VFEX and this should be complemented by increased productivity and investment.
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.c.zw
