fbpx

Major Boost For VFEX, As Padenga Comes Aboard

The Victoria Falls Stock Exchange (VFEX) is set for a major boost following crocodile breeder, Padenga Holdings and miner, Caledonia Mining Corporation Plc announcements for an imminent listing and trading on the bourse.

The VFEX was launched last year with the aim of creating a regional capital offshore center trading in foreign currency.

Since then, the VFEX has only had one listing, SeedCo International amid widespread fears that the project was failing to get investor-confidence.

However,  the listing of Padenga Holdings today and subsequent initial trading on Monday next week is expected to be a massive step in the right direction for the bourse.

“NOTICE is hereby given that Padenga Holdings Limited, which will delist from the Zimbabwe Stock Exchange on Friday, 9 July 2021, will be listing on the Victoria Falls Stock Exchange on the same date. FURTHER TAKE NOTICE that trading in Padenga Holdings Limited’s securities will commence on Monday, 12 July 2021,” said VFEX chief executive, Justin Bgoni.

Similarly, Caledonia Mining Corporation Plc, which owns Blanket Gold Mine in Gwanda, has begun the process of listing on the VFEX, the company disclosed earlier this week.

“Caledonia announces it is commencing the process of pursuing a listing of depositary receipts representing the company’s shares on the VFEX in Zimbabwe,”

“Such a listing would be conditional upon market conditions and the implementation of positive proposals made by the Zimbabwe authorities in respect of improved payments in US dollars for gold produced at the company’s majority owned Blanket Mine.” said Caledonia.

The mining firm is targeting to raise US$ 3 million “to satisfy the requirements for local shareholder spread and a subsequent introduction,” said the company.

The development is expected to make way for other companies to follow as the project is gradually getting investor by-in.

Government has been marketing the bourse in a series of virtual global roadshows since April this year.

“If you see big companies like these expressing interests in the VFEX it’s an indicator on the confidence that is brewing in the market regarding the stock market,” said economic analyst, Pepukai Chivore.

“It’s a huge confidence booster and more so for foreign investors who have had reservations about the ZSE which has been having challenges to repatriate dividends, so the VFEX comes as a very good alternative,” he added.

Zimbabwe has been battling to attract foreign direct investment in recent years due inconsistent economic policies which tend to deter capital inflows.

Despite this, the ZSE remains one of the best performing stock exchanges in the region  according to research house, Africa Markets which states that in 2020 the ZSE All Share Index had a lift-off year up,  1,045.8  percent for investors in Zimbabwe dollars and up 135 percent in US dollar-terms.

You cannot copy content of this page