Zimbabwe Stock Exchange (ZSE) listed home ware furniture and electrical appliances retailer, Axia Corporation Limited is set to be the latest firm to delist and migrate to the Victoria Falls Stock Exchange (VFEX) after its board approved the decision.
The VFEX, a subsidiary of ZSE is quoted in foreign currency and was established to become a regional offshore financial services centre.
Despite a slow start since its establishment over two year ago, this year has been progressive for VFEX, attracting significant interest from several companies which could also be attributed to various incentives and external marketing efforts by the government.
Axia –a former Innscor company will follow the path of another Innscor spin-off Simbisa Brands which delisted on the ZSE and was listed on VFEX last week Friday to make a total of 6 companies now trading on the bourse.
“The Directors of Axia Corporation Limited (the “Company”) wish to advise all shareholders and the investing public that the Board has approved the delisting of the Company from the Zimbabwe Stock Exchange, immediately followed by its listing on the Victoria Falls Stock Exchange (the “Transaction”),” said Axia in a cautionary statement to investors.
“Further details of the Transaction will be provided to Shareholders once all regulatory processes have been finalised. Shareholders are therefore advised to exercise caution and consult their professional advisers when trading in the Company’s shares.”
To date companies listed on the VFEX includes Bindura Nickel Company, Caledonia, Padenga, SeedCo International, Nedbank Group Limited Depository Receipts and Simbisa Brands.
Many companies have been deserting the ZSE citing the volatility of the local currency and the need to preserve shareholder value which is better offered by the VFEX.
As of yesterday, the VFEX market capitalization stood at US$ 475.3 million with the All Share index gaining 2.18 percent to close at 106.0868 points.