The Sunday News
Judith Phiri, Business Reporter
Seed manufacturer, SeedCo Limited Board has approved the company’s listing migration from the Zimbabwe Stock Exchange (ZSE) to the Victoria Falls Stock Exchange (VFEX).
SeedCo Limited will follow its spin-off, SeedCo International which migrated to the VFEX in 2020 becoming the first counter on the US-denominated bourse.
In a statement, the company advised stakeholders to exercise caution when dealing in the company’s securities.
“Shareholders of SeedCo 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),” read part of the statement.
“Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities. Further announcements will be made in accordance with regulatory requirements as and when there are material developments.
SeedCo Limited is among a number of companies and firms that have recently announced intentions of listing on the VFEF and some have started trading.
The bourse now boasts of hosting Padenga Holdings Limited, mining giant Caledonia Mining, Bindura Nickel Corporation, Simbisa Brands and Nedbank Zimbabwe.
Among them is also Platinum miner Karo Mining Holdings, agro-processor National Foods Holdings Limited and recently retail and specialty distribution group, Axia Corporation board proposed to move the group company’s share capital from the ZSE to the VFEX.
VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE), launched in 2020 as part of efforts to attract global capital and restore foreign investor confidence in Zimbabwe’s capital markets and help companies raise capital in foreign currency.
The establishment of the VFEX is one of the many initiatives implemented by the Second Republic to stabilise the economy and attract foreign direct investment.
The VFEX is fast attracting listings as it offers a raft of incentives including tax exemptions on capital gains and the ability to repatriate funds from a country where foreign exchange is in short supply to attract global capital.
Investors who participate in the VFEX benefit from the ability to move their capital and dividends in and out freely, low transaction costs, tax incentives that include a five percent dividend withholding tax for foreign investors and exemption from capital gains withholding tax for all investors and minimal currency risks.