The Zimbabwe Stock Exchange (ZSE) has invited a number of companies for participation in the soon to be operationalized Victoria Falls Stock Exchange (VFEX).
VFEX, a wholly owned subsidiary of the local bourse is currently awaiting licencing by the Securities and Exchange Commission of Zimbabwe (SEZ).
In a statement the ZSE called on stakeholders to express their interest to participate on the VFEX not later than Tuesday this week.
“Security dealing firms licenced by the Securities and Exchange Commission of Zimbabwe, are eligible to express their interest,” said ZSE chief executive officer, Justin Bgoni, in the statement.
“Securities dealers, accounting firms, banks, legal practitioners and investment advisers wishing to offer sponsor services on VFEX are eligible to express their interest. Custodian firms licensed by the Securities and Exchange Commission of Zimbabwe and are part of clearing banks which are able to clear and settle transactions in United States Dollars are eligible to express their interest.”
Other companies courted by the local bourse include security transfer firms and investment management firms.
“Securities transfer firms licenced by the Securities and Exchange Commission of Zimbabwe are eligible to express their interest,” added Bgoni.
“Investment management firms licenced by the Securities and Exchange Commission of Zimbabwe are eligible to express their interest.”
He said interested parties were required to send their expression of interest via email.
The VFEX will become Zimbabwe’s second stock market after the ZSE.
According to Statutory Instrument 196 of 2020 (Exchange Control — Special Provisions for Securities Listed on the Victoria Falls Stock Exchange — Regulations, companies listed on the ZSE may only list up to 20 percent of their total capital on the US dollar bourse if its capital is raised offshore or from free funds.
“A company that is a Zimbabwean resident and listed on the Zimbabwe Stock Exchange; may list on the Victoria Falls Stock Exchange not more than 20 percent of its capital at any time on the Zimbabwe Stock Exchange: provided that any capital raised by such company on the Victoria Falls Exchange shall be from an offshore source or free funds,” reads part of the SI.
Securities listed on the VFEX shall be tradable and settled solely in United States dollars or a convertible currency.
According to the new regulations, a company whose residence does not lie in Zimbabwe may list on the VFEX in line with the broader goal of the US dollar-denominated bourse to attract new foreign capital.