Regional seed manufacturer, Seed Co International Limited, is now pursuing listing on the newly established Victoria Falls Stock Exchange (VFEX) following the suspension of its shares from trading on the Zimbabwe Stock Exchange (ZSE) last month.
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 latest trading update, Seed Co secretary, Eric Kalaote, said they had begun the process of listing on the VFEX which will trade only in the United States dollars.
“Shareholders are advised that pursuant to the proposal to transfer the ZSE Secondary Listing of Seed Co International Limited from the ZSE to the soon to be established VFEX, a proposal to merge the Zimbabwean operations, held under Seed Co Limited, and the international operations, held under Seed Co International, is being pursued, subject to regulatory approvals, in order to make the VFEX secondary listing of Seed Co International Limited competitive and comparable to other Zimbabwean dual-listed counters (“the Transaction”),” said Kalaote.
“The Transaction if successful may have a material effect on the price of the securities of Seed Co International Limited. Accordingly, shareholders are advised to continue exercising caution when dealing in the securities of Seed Co International Limited until further announcements.”
Meanwhile, ZSE executive officer, Justin Bgoni, said VFEX was now finalising the listing and membership requirements, setting up of the trading and depository systems as well as modalities on the clearing and settlement of transactions.
The new secondary bourse was licenced this week by the Securities and Exchange Commission of Zimbabwe.
“The completion of these processes, which is imminent, will enable VFEX to be launched,” said Bgoni.
“The market will be updated on the exact date when VFEX will go live. VFEX wishes to thank all stakeholders including the Ministry of Finance and Economic Development, Securities and Exchange Commission of Zimbabwe, Reserve Bank of Zimbabwe and market participants for the assistance rendered to date.”