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HomeBusinessZSE Halts Trading Of Padenga Shares Ahead Of VFEX Switchover

ZSE Halts Trading Of Padenga Shares Ahead Of VFEX Switchover

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The Zimbabwe Stock Exchange (ZSE) has halted the trading of crocodile breeding firm, Pandenga Holdings Limited’s shares on its platform to make way for the company’s smooth switchover to the Victoria Falls Stock Exchange (VFEX).

The VFEX- a subsidiary of the ZSE was opened last year as an alternative securities market aimed at attracting offshore capital, trading in foreign currency.

This comes amid foreign investor- pullout from the ZSE in recent years due to the devaluation of the Zimbabwe dollar.

“NOTICE is hereby given that the ZSE has instituted a Securities Halt in the trading of shares in Padenga Holdings Limited (the “Issuer” or “Padenga”) with effect from Tuesday, 6 July 2021, pending its delisting from the ZSE on Friday, 9 July 2021,” the ZSE said.

“FURTHER TAKE NOTICE that Investors will not be able to buy or sell Padenga shares during the period the Securities Halt is in effect.”

A fortnight ago, Padenga wrote to ZSE seeking a voluntary termination of its listing citing its vision to raise capital in foreign currency to meet expansion targets and also derive VFEX sweeteners articled by the Finance Minister, Mthuli Ncube.

“The board of directors considered the termination of Padenga’s ZSE listing, with the intent to re-list the company’s shares onto the VFEX by way of introduction,”

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“The migration of the listing from ZSE to VFEX is driven by the need to benefit from the incentives articled by the Minister of Finance and Economic Development and has not been initiated by any shareholder per se and will not prejudice minorities,” said Padenga.

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The decision was upheld by the shareholders of the company on July 2, 2021, who voted 92.21 percent in favor of the move to de-list from ZSE.

Interestingly, the move will enable existing shareholders to realize the United States dollar value of their holdings in the market, thus allowing greater liquidity and for the broadening of the shareholder base.

The development is a relief for the VFEX which since its launch in October 2020 has only attracted one listing- SeedCo International.

In April, the Finance Minister embarked on a global road show to market the country’s secondary bourse in a bid to bring more listings, particularly foreign investors.

“In the Global Investor Roadshow, we positioned the Victoria Falls Stock Exchange (VFEX) as an attractive platform for investors aiming to raise capital in hard currency for investment into Zimbabwe and Africa in general,” said Prof Ncube.

Government will also issue bonds on VFEX to raise capital

 

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