The Victoria Falls Stock Exchange (VFEX) market capitalisation jumped 37,7 percent to US$475,25 million since the listing of Nedbank Group Limited’s Depository Receipts in November and Simbisa Brands shares at the beginning of December.
As at September 30, 2022, VFEX market capitalisation was US$345 million, having increased 25 percent from US$273,24 million in the previous quarter.
Currently, there are now 6 counters on VFEX while a number of companies have shown interest to list on the foreign currency-denominated bourse.
Simbisa Brands whose securities debuted on the VFEX on December 5, 2022 saw 250 shares of its stocks exchange hands at USc38,30 each upon listing.
The counter, which became the sixth listing on VFEX, had opened trading at USc38,28. Simbisa delisted from the Zimbabwe Stock Exchange (ZSE) on November 28, 2022 and listed on the VFEX on December 2, 2022.
In its pre-listing statement, Simbisa said the migration to VFEX would enable the group to attract foreign currency capital from investors to match the business’s foreign currency needs.
Mr Addington Chinake, the group’s non-executive chairman said the company sought to take advantage of offshore settlement options which allow investors to efficiently repatriate their dividends.
“This would also eliminate the foreign currency risk of holding Simbisa shares as a foreign investor,” he said.
He noted that VFEX had lower trading costs compared to the ZSE and also has tax incentives that enable the investor to retain more of their returns compared to the ZSE.
“Overall, better investment terms would promote liquidity in the trading of Simbisa shares, making them more attractive to investors.
“The VFEX listing will also elevate Simbisa’s local and international profile thereby boosting its public and commercial standing,” said Mr Chinake.
Simbisa has continued to record strong year-on-year growth in customer counts with its restaurants serving over 52,3 million customers in the first quarter ended September 30, 2022, up 28,6 percent in the same period last year.
Meanwhile, Monday’s trading activity on VFEX occurred in Padenga Holdings and Seedco International which traded 500 and 36582 shares respectively. As a result, turnover closed Monday at US$13,058.
VFEX which is a subsidiary of the Zimbabwe Stock Exchange was established to kick-start the Offshore Financial Services Centre (OFSC) earmarked for the special economic zone in Victoria Falls.
The US dollar-denominated equities market continues to evolve since its launch in October 2020 as the bourse has witnessed growth while interest from potential listings has increased.
VFEX was also launched 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.