eBusiness Weekly
Tapiwanashe Mangwiro
SeedCo Limited, the country’s largest seed producer, says it has received approval from the board of directors to list on the Victoria Falls Stock Exchange (VFEX), a US dollar-denominated exchange that was launched in 2020.
This comes as more companies are opting to delist from the Zimbabwe Stock Exchange (ZSE) in favour of listing on the highly incentivised VFEX.
“Shareholders of Seed Co Limited (“the Company”) and the investing public are advised that the board has approved the migration of the company’s listing from the Zimbabwe Stock Exchange to the Victoria Falls Stock Exchange (“the Transaction”),” company secretary Tineyi Chatiza said in a cautionary statement.
It urged investors to use caution when transacting with the company’s securities.
“Further announcements will be made in accordance with regulatory requirements as and when there are material developments.”
Its sister company, Seed Co International, is already on the VFEX.
This comes as the company previously failed to list on the bourse via a merger with its subsidiary as the Ministry of Finance and Economic Development said it would have taken away a significant company from the country to Botswana.
“SCIL hereby offers to acquire … from SCL shareholders all their SCL ordinary shares for the offer consolidation,” SeedCo said then.
“SCL shareholders, who accept the offer by the closing date, shall receive one new SCIL share for every 0,98 shares they hold in SCL. The share swap is based on the relative intrinsic values of SCIL and SCL,” it added.
Axia Corporation and National Foods Holdings have also declared their intent to transfer to the new market.
Experts say migrating to VFEX is likely to remain an attractive option, but will only be viable for a few companies with significant forex earnings or dominant market positions.
In order to encourage international investment into the country, the VFEX aims to provide a global platform for the trading of equities in foreign currencies. The exchange is also one of many programs the government has put in place to stabilize the economy and draw in much-needed foreign direct investment.
