The country’s largest seed producer, Seed Co Limited has abandoned its proposal to migrate from the Zimbabwe Stock Exchange (ZSE) to the highly incentivized Victoria Falls Stock Exchange (VFSE).
Last month, Seed Co announced it had received approval from its board of directors to list on the VFSE.
Company secretary, Tineyi Chatiza did not state the reasons beyond the sudden U-turn.
“Shareholders of Seed Co Limited (The Company) and the investing public are advised that the Board has resolved to suspend indefinitely the proposal to migrate the Company’s listing from the Zimbabwe Stock Exchange to the Victoria Falls Stock Exchange (“The Transaction”),” said Chatiza in Thursday advisory to shareholders.
He added: “Accordingly, the Company Announcement made 18 January 2023 is hereby withdrawn.
“Shareholders and the investing public are hereby advised that the Company will remain listed on the main Board of the Zimbabwe Stock Exchange.”
In 2021, the Reserve bank blocked Seed Co’s plan to merge with VFSE–listed Seed Co International, a move that would have led to the creation of one company.
The more attractive VFSE has seen companies such as National Foods, African Sun and Axia Corporation amongst others have delisted from the ZSE and moved to the US dominated bourse due to its favorable trading terms.