ZSE proposes strategic reconstruction and self-listing on Main Board
HARARE – The Zimbabwe Stock Exchange Limited (ZSE Limited) has announced a significant proposal aimed at enhancing shareholder value through a strategic reconstruction plan and a self-listing on the Zimbabwe Stock Exchange Main Board (ZSE Main Board). This initiative, approved in 2021, is set to culminate in the listing of ZSE Holdings by way of introduction on October 28, 2024, pending regulatory approvals.
The proposed scheme of reconstruction is designed to create a holding company structure that will encompass ZSE Limited and its subsidiary, Victoria Falls Securities Exchange Limited (VFEX). This restructuring is crucial as it allows both entities to operate independently while expanding their product and service offerings, which may be restricted under their current securities exchange licenses. The establishment of ZSE Holdings aims to unlock new investment opportunities and enhance operational efficiencies across the group.
In a circular to shareholders, ZSE emphasized the importance of this move, stating that it would not only facilitate a more robust governance framework but also improve liquidity in the market. A notable feature of the proposal is a planned 1000 for 1 stock split, which is expected to increase the number of shares available for trading, thereby attracting more investors and potentially boosting share prices.
Top ten shareholders
The circular outlines several key benefits for shareholders, including improved access to capital, enhanced market confidence, and the potential for increased shareholder value. The directors have expressed their belief that the proposed transaction will significantly benefit shareholders by positioning ZSE Holdings as a competitive player in the financial services sector.
To facilitate the proposed changes, the transaction is contingent upon several conditions precedent, including the passing of resolutions by ZSE Limited and ZSE Holdings shareholders at an Extraordinary General Meeting (EGM) scheduled for October 4, 2024.
The circular also highlights the importance of regulatory approvals, including the registration of resolutions with the Registrar of Companies and the granting of tax relief by the Zimbabwe Revenue Authority (ZIMRA). The Securities and Exchange Commission of Zimbabwe (SECZim) will oversee the transaction under the newly established Self-listings Rules for Exchanges.
As part of the restructuring, ZSE Limited is also seeking shareholder approval to issue ordinary shares to qualifying members of the Zimbabwe Stock Exchange Employee Share Option Scheme (ESOS) through a limited Share Appreciation Rights Plan (SARP). This initiative aims to align employee interests with those of shareholders, fostering a culture of shared success.
This strategic move marks a pivotal moment for the Zimbabwe Stock Exchange, as it seeks to adapt to the evolving financial landscape and enhance its value proposition for investors.-finx
