Nedbank lists on the Victoria Falls Stock Exchange
Leonard Ncube, Victoria Falls Reporter
NEDBANK Zimbabwe will this Friday officially list on the Victoria Falls Stock Exchange (VFEX) becoming the first financial institution to trade stock at the foreign currency-denominated bourse.
The VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE) and was 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.
It started trading with leading seed producer and distributor, SeedCo International Limited and mining giant Caledonia Mining, skins and meat processor Padenga and Bindura Nickel Corporation came on board later.
Several firms have recently announced intentions of listing.
Simbisa Brands and financial services group GetBucks are expected to migrate from ZSE to VFEX.
National Foods Holdings Limited, has decided to delist from the ZSE to VFEX, a move the firm says will improve its capitalisation and enhance its marketability.
The VFEX platform is seen as a gateway for companies in Zimbabwe, Sadc and the rest of Africa to raise capital in foreign currency and also provide investors to trade in the secondary market in hard currency.
All global companies invested in Zimbabwe can seek listing on VFEX.
In an invite to stakeholders, ZSE said Finance and Economic Development Minister Professor Mthuli Ncube will be the guest of honour at the event set to take place at VFEX office in Victoria Falls.
“The Victoria Falls Stock Exchange Limited (VFEX) cordially invites you to the Nedbank Zimbabwe Depository Receipts (ZDRs) listing ceremony scheduled for 25 November 2022 from 10:00-12:30 hours. The listing ceremony will be held at the VFEX Offices, located at Shop 1, Stand 305, City of Victoria Falls.
“The guest of honour for the listing ceremony is the Minister of Finance and Economic Development, Honourable Professor Mthuli Ncube,” read the invite.
A depositary receipt is an instrument that gives investors the opportunity to hold equity listed in foreign markets without the need to move funds beyond borders. The US is among the countries with several depositary receipts.
There are 460 American Depositary Receipts (ADRs) and these offer investors exposure to equity instruments listed in 37 different countries. Zimbabwe, on the other hand, only has the Caledonia ZDRs which are listed on VFEX.
Nedbank Group Limited is a financial services group offering wholesale and retail banking services, as well as insurance, asset management and wealth management services.