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Nqobile Bhebhe, Senior Business Reporter

INNSCOR Africa Limited group has outlined its roadmap towards listing on the Victoria Falls Stock Exchange (VFEX) but cautioned shareholders that in the event of the proposed transaction not materialising, it will remain listed on the Zimbabwe Stock Exchange (ZSE).

The diversified manufacturing group’s board of directors last month approved de-listing from ZSE to join the VFEX, which is offering a raft of incentives.

These include 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.

Innscor is set to hold a hybrid Extraordinary General Meeting on February 15 that will set the pace for eventual VFEX listing.

According to the timelines, it projects to complete the listing process on 24 February.

The notice indicates that record date and Innscor share register close on February 10 and last day of lodging Proxy Forms is on February 13.

The next phase is the extra-ordinary general meeting on February 15, followed by the publication of the EGM results on February 16.

The last day of trading on ZSE is set for February 17 while the termination of Innscor ZSE listing and transfer of Innscor share register from the ZSE to the VFEX is planned for February 23 with the estimated completion of Innscor’s VFEX listing earmarked for February 24.

Innscor’s operations span various sectors of the economy. 

The group engages in food processing and the manufacture, distribution, and retailing of household commodities and fresh produce.

The US$-denominated VFEX is a subsidiary of the ZSE launched in 2020 as an off-shore biased financial services centre as part of efforts to attract global capital and restore foreign investor confidence in Zimbabwe’s capital markets and help companies raise capital in foreign currency.

Experts say the exchange has the potential to become a game changer in a country endowed with vast mineral resources as it trades in hard currency and, therefore, a good funding mechanism for the mining sector, which is seen as an enabler for economic growth.

Non-executive, independent chairman of the board of directors, Mr Addington Chinake, said Innscor has sought to expand and diversify its interests across the manufacturing spectrum, having concluded a US$ 70 million capital expenditure drive in FY2022, with a further US$ 56 million planned in the current financial year.

He said the group remains focused on continual investment to enhance its manufacturing capabilities, extend product ranges, venture into new complementary categories, and ensure the latest technologies are employed to remain a world-class manufacturing group.

“Consequently, the board deems it appropriate to consider the delisting of Innscor from the ZSE and to support the group’s subsequent listing on the VFEX to enhance access to international capital markets. The board is of the view that this strategy enhances shareholder value,” said Mr Chinake.

He appealed to shareholders to support the de-listing of Innscor shares from the ZSE and the subsequent list on VFEX. The foreign currency-denominated bourse was established to kick-start the Offshore Financial Services Centre (OFSC) earmarked for the special economic zone in Victoria Falls.

The US dollar-denominated equities market continues to evolve since its launch in October 2020 as the bourse has witnessed growth while interest from potential listings has increased.

VFEX was also launched as part of efforts to attract global capital and restore foreign investor confidence in Zimbabwe’s capital markets                             and help companies raise capital in foreign currency.