Regional seed manufacturer, Seed Co International Limited, has since migrated from the Zimbabwe Stock Exchange (ZSE) to the newly established Victoria Falls Stock Exchange (VFEX), which trades only in foreign currency.
The VFEX will be launched today by Finance and Economic Development Minister, Mthuli Ncube, and will commence trading on Monday.
This migration of Seed Co follows the suspension of its shares from trading on the ZSE two months ago.
Seed Co and other two international stocks –Old Mutual Private and Pretoria Portland Cement (PPC) –were suspended from the local bourse when it resumed trading on August 3 more than a month since the government had halted trading by all counters.
Effecting the suspension of trading on the ZSE on June 26, the government claimed some listed companies had been fingered in illegal foreign currency dealings, contributing to macro-economic instability.
However, when trading resumed on the bourse the three dually-listed concerns remained suspended.
Seed Co has its primary listing on the Botswana Stock Exchange while Old Mutual and PPC are also listed on the South African Johannesburg Stock Exchange.
In a statement this week, ZSE chief executive Justin Bgoni announced both the delisting of Seed Co from the ZSE and the new listing on the VFEX.
“Further to the notice published on 31 July 2020 regarding the halt in the trading of Seed Co International Limited (“Seed Co International”) shares, the Zimbabwe Stock Exchange Limited (“ZSE”) hereby notifies all stakeholders of the termination of listing of Seed Co International with effect from 23 October 2020,” said Bgoni.
“As required by Section 64 (a) (i) of the Securities and Exchange Act [Cap24.25], the ZSE sought and was granted permission by the Securities and Exchange Commission of Zimbabwe (“SECZ”) to delist Seed Co International from the ZSE’s official list. In terms of Section 1.18 (d) of the ZSE Listing Requirements, holders of Seed Co International’s securities are hereby advised that the securities can no longer be traded on the ZSE with effect from 23 October 2020.”
Bgoni said Seed Co International’s securities would be listed on the VFEX on 26 October 2020.
“Seed Co International becomes the first issuer to list on the Main Board of VFEX,” said Bgoni.
“Seed Co International will trade under the symbol: SCIL.VX and ISIN
BW 000 000 200 5. Investors are advised to contact the VFEX registered securities dealers for further guidance.