DIVERSIFIED manufacturer, Zimplow Holdings Limited (ZSE:ZIMW), is today expected to stop trading on the Zimbabwe Stock Exchange (ZSE) in readiness for subsequent listing on the Victoria Falls Stock Exchange Limited (VFEX) on Friday.
Zimplow is taking the VFEX listing as an opportunity to build a strong regional and international profile, and attract more investors at a time it is strategically positioning itself to be a regional agriculture and earthmoving equipment supplier.
It will join 12 stocks already trading on the US dollar-denominated bourse. The decision to migrate to the USD-denominated VFEX was approved by shareholders at an Extraordinary General Meeting held last week on Thursday.
“The Company is expected to delist from the Zimbabwe Stock Exchange (ZSE) on Wednesday the 12th of July 2023, followed by its listing on the VFEX on Friday the 14th of July 2023,” said Zimplow in a notice to shareholders.
In a notice, ZSE said it will institute a trading halt on Zimplow shares effective Tuesday to allow for the settlement of shares.
“Zimbabwe Stock Exchange Limited (ZSE) hereby notifies the investing public that the last day of trading in Zimplow Holdings Limited (“ZIMW.ZW”) shares on the ZSE is Monday, 10 July 2023.
“The ZSE will therefore institute a trading halt on Zimplow shares effective Tuesday, 11 July 2023 to allow for the settlement of shares. Following the implementation of the halt, Zimplow Holdings Limited will be delisted from the ZSE on Thursday, 13 July 2023 and subsequently listed on the Victoria Falls Stock Exchange Limited (“VFEX”) on Friday, 14 July 2023.”
The firm said investors will not be able to buy or sell Zimplow shares during the period the halt is in effect.
The shares will start trading on VFEX on Monday, July 17.
The USD-denominated VFEX is a subsidiary of the ZSE launched in 2020 as an off-shore financial services centre.
It is the only exchange in Africa trading in the United States dollars and was established as a pioneer offshore financial services centre by the Government in line with Vision 2030, which requires a lot of foreign investment as the country needs a vehicle that will make it attractive to foreign investors.
As the number of listings on the VFEX continues growing, and the flow of US dollar liquidity increases in the formal economy, improved activity on the VFEX in the medium to long-term is expected, according to FBC Securities in their quarterly report.