Edgars eyes VFEX listing
CHAIN clothing store retailer, Edgar’s Stores Limited, will delist from the Zimbabwe Stock Exchange (ZSE) and join to the Victoria Falls Stock Exchange (VFEX), lured by incentives offered by the foreign currency-only bourse.
In a cautionary statement yesterday, Edgars said further details of the transaction would be provided to shareholders once all regulatory processes had been finalised.
“The directors of Edgars Stores Limited wish to advise all shareholders and the investing public that the board, subject to shareholder approval and the granting of all necessary regulatory authorisations, has approved the delisting of the company from the Zimbabwe Stock Exchange, immediately followed by its listing on the Victoria Falls Stock Exchange,” company secretary Chipo Mafunga said.
Edgars will become the first company to list on the VFEX in 2024.
Last year, blue-chip Innscor Africa Limited, Axia Corporation Limited, hospitality group African Sun Limited, Zimplow Holdings Limited, First Capital Bank and property firm WestProp Holdings Limited, listed on the VFEX.
The delisting of Edgars comes as the firm is currently implementing turnaround strategies to remain profitable against the depreciation of the local currency and an influx of cheap imported second-hand clothing.
According to financial services firm, IH Securities, VFEX provides currency protection, improving US dollar liquidity and some hard currency dividend yield, despite limited capital gains.
The delisting of Edgars, however, comes despite the ZSE adding US$1,32 billion year to date to its overall market capitalisation owing to the depreciation of the local currency.
Edgars also announced the appointment of a new company secretary.
“The Edgars Stores Limited board of directors wishes to advise its valued shareholders and other stakeholders that it has changed the company secretary,” Edgars said.
“Chipo Mafunga of Chimuka Mafunga Commercial Attorneys has been appointed as company secretary effective January 1, 2024. The board sincerely thanks Sikhumbuzo Mate for his dedication during the last two years.”