African Sun board approves migration to VFEX
Nqobile Bhebhe, Senior Business Reporter
HOSPITALITY group African Sun Limited’s board has approved the migration to the Victoria Falls Stock Exchange (VFEX), becoming the first hospitality firm to join the bourse.
In a cautionary statement to shareholders, the group said it will delist from the Zimbabwe Stock Exchange.
Further details will be provided once all regulatory processes have been finalized, it noted.
“The Directors of African Sun 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”).
“Shareholders are therefore advised to exercise caution and consult their professional advisers when trading in the Company’s shares.”.
The development is a further indication of growing confidence in VFEX, which has manifested through several new listings.
The bourse has experienced rapid growth in recent months and managed to attract migrations.
More listings are expected on the VFEX this year with Innscor, GetBucks, Axia and Seed Co Limited announcing their plans to migrate from ZSE to VFEX.
VFEX, launched in October 2020 is a subsidiary of the ZSE established to kick start the Offshore Financial Services Centre (OFSC) earmarked for the special economic zone in Victoria Falls.
The US dollar-denominated stock exchange has been offering various incentives that include Government’s increase in the retention ratio for exporters listed on the VFEX to 100 percent, which has been an attractive factor for companies.
Listing on the VFEX also facilitates raising of US dollar capital, which enhances the potential for organic growth and inorganically.