Clothing giant, Edgars Stores Limited has become the latest company to ditch the Zimbabwe dollar (ZWL)-denominated Zimbabwe Stock Exchange (ZSE) and is set for a listing on the Victoria Falls Stock Exchange (VFEX) pending approvals from the regulator.
The ZSE has since lost its luster due to the continuous devaluation of the ZWL.
The company announced its departure from the ZSE in a statement published on the bourse’s website.
“The Zimbabwe Stock Exchange Limited (“ZSE”) hereby notifies the investing public that the last day of trading in Edgars Stores Limited (EDGR.ZW) shares on the ZSE is Wednesday, 27 March 2024,”
“The ZSE will therefore institute a trading halt on Edgars Stores Limited shares effective Thursday, 28 March 2024 to allow for the settlement of shares. Pursuant to the company’s Extraordinary General Meeting (EGM) held on Friday, 25 March 2024, the ZSE has requested authorisation from the Securities and Exchange Commission of Zimbabwe (“SECZIM”) to delist Edgars Stores Limited from the ZSE and subsequently list it on VFEX,”
“During the halt period, investors will not be able to buy or sell Edgars Stores Limited shares. Trading of the shares is expected to commence on VFEX on Monday, 08 April 2024 subject to SECZIM approval.”
The VFEX offers a range of incentives for investors including moving capital and dividends in and outside the country freely, lower transaction costs, tax incentives including a five percent dividend withholding tax for foreign investors and exemption from capital gains withholding tax for all investors.
However, the major attraction is the trading in US-dollar currency which is expected to see the company raise foreign currency for capital projects at a time the country is starved of hard currency.
Analysts have predicted the continuous migration of companies from the ZSE to the VFEX unless the local currency regains stability.
