• The company will delist on ZSE on the 12th of July
  • Listing on VFEX is set for 14th
  • What are the benefits of VFEX listing

Harare- Zimplow Holdings Limited has announced that it will be delisting from the Zimbabwe Stock Exchange (ZSE) on July 12, 2023, followed by its listing on the US Dollar-denominated Victoria Falls Stock Exchange (VFEX) on July 14, 2023.

This is according to the results of the company’s extraordinary general meeting held on the 6th of this month.

This move is expected to provide numerous benefits for the company, including the ability to raise capital in hard currency, obtain other forms of finance, and benefit from proficient financial reporting.

VFEX currently lists 12 companies, including blue chips like Innscor, National Foods, Bindura Nickel Corporation, and Caledonia Mining Corporation.

Due to the depreciation of the Zimbabwe dollar and its limited use, ZSE has struggled to increase capital raised for companies. Listing on VFEX will enable Zimplow to raise capital in hard currency and use different securities to raise capital, such as debt, equity, ETF, and REIT units. It will also allow the company to obtain other forms of finance, such as bank loans at better terms.

Trading on VFEX is also cheaper compared to ZSE, and this is a benefit that can be exploited by the company. There is no capital gains tax on VFEX for investors and dividend withholding tax for foreign investors is only 5%. This is against 10% on the Zimbabwe Stock Exchange. Investors with significant shares on VFEX reap more returns than those on the Zimbabwe Stock Exchange.

Above that, another key advantage is the easy repatriation of dividends for shareholders as they are declared in US dollars. Unlike the Zimbabwe Stock Exchange, on the VFEX, foreign investors can easily repatriate their capital and dividends without the headache of going through auction markets and incurring exchange losses.

On confidence and shareholder attraction and retention, VFEX boasts proficient reporting that is key in retaining investors as everything is black and white, unlike ZSE where blended inflation figures are used, massaging inflation stats through underestimating them.

Reporting in US dollars brings sanity to the numbers, paints a more reflective picture of performance, and helps investors assess the return on their investments.

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