eBusiness Weekly
Enacy Mapakame
Listed clothing retailer, Edgars Stores Limited, has revealed its intention to delist from the Zimbabwe Stock Exchange (ZSE) for subsequent listing on the Victoria Falls Stock Exchange (VFEX).
Edgars’ planned migration is subject to shareholder approval and the granting of all necessary regulatory authorisations.
In a cautionary notice this week, new company secretary, Chipo Mafunga, said the directors have since approved the de-listing of the firm from ZSE.
“The Directors of Edgars Stores Limited wish to advise all shareholders and the investing public that the board, subject to shareholder approval and the granting of all necessary regulatory authorisations, has approved the de-listing of the company from the Zimbabwe Stock Exchange, immediately followed by its listing on the Victoria Falls Stock Exchange,” she said.
According to Mafunga, more details will be available to shareholders with regards to the transaction once all regulatory processes have been finalised.
“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,” she said.
The clothing retailer joins a number of other businesses that have migrated from the primary bourse, the ZSE to US dollar denominated VFEX. Market watchers have largely guided the VFEX to maintain a growth trajectory experienced in 2023 where big cap counters like Innscor, Natfoods and hospitality group African Sun moved to the exchange.
New issuers are also expected to debut on the exchange as they seek hard currency to hedge against currency volatility as well as attract quality investors from the regional and international markets.
For Edgars, its migration to a US dollar denominated exchange will be a perfect hedge at a time the retailer is facing stiff competition from cheap imports flooding the local market.
The group engages in the retail of clothing, footwear, textiles, and accessories in Zimbabwe, and operates through six segments, which are 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.
