Sikhulekelani Moyo, Business reporter
FIRST Capital Bank Limited has announced plans to delist from the Zimbabwe Stock Exchange with intention to list at the Victoria Falls Stock Exchange (VFEX).
This comes at a time VFEX is gaining rapid momentum having attracted more top performing companies, injected much-needed confidence and cementing the country as a safe investment destination.
The USD-denominated VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE) launched in 2020 as an off-shore financial services center.
“The directors of First Capital Bank Limited (the “company’) wish to advise all shareholders and the investing public that the board has approved the delisting of the company from Zimbabwe Stock Exchange, to be immediately followed by its listing on the Victoria Fall Stock Exchange (the “Transaction”), said First Capital Bank company secretary Sarudzai Binha in a cautionary statement published yesterday.
“Further details of the transaction will be provided to shareholders once all regulatory processes have been finished.
“Shareholders are, therefore, advised to exercise caution and consult their professional advisors when trading in the company’s shares.”
VFEX is fast attracting listings as it offers a raft of incentives including tax exemptions on capital gains and the ability to repatriate funds from a country where foreign exchange is in short supply to attract global capital.
For instance, investors who participate in the VFEX benefit from the ability to move their capital and dividends in and out freely, low transaction costs, and tax incentives that include a five percent dividend withholding tax for foreign investors, as well as exemption from capital gains withholding tax for all investors and minimal currency risks.