HARARE- The Zimbabwe Stock Exchange is deepening value proposition for companies listed on the board by fostering cross border listings with Botswana’s BSE.
Currently a total of 60 companies are listed on the Zimbabwe Stock Exchange while the Botswana Stock Exchange has 34 listings.
The 2 bourses share 1 listing, that of Seedco international, a Seedco Limited spinoff, which separately listed on the BSE main board in October 2018. The counter went on to secondary list on the ZSE.
SeedCo international is a pan African seed production company with roots in Zimbabwe. It has since spread to at least 10 more African countries. Previously Banc Abc, a pan African banking corporation is the only other company to share a dual listing on the 2 exchanges.
Before its acquisition by Atlas Mara which led to a subsequent delisting on either exchanges, the bank held a primary listing on the ZSE and a secondary listing on the BSE.
The allure of BSE stems on its ability to create a gateway for hard currency in light of recent macro developments subsequent to the reintroduction of the Zimdollar. The market has largely seen less listings in recent years with all of the last 5 listings coming as spinoff from existing listings.
Cassava Smartech was spurn from Econet, while Axia and Simbisa were offloaded from Innscor to make up the set of most recent listings. The bourse risks losing more listings as macro conditions worsen coupled with inability to raise meaningful hard currency which may be utilized for expansion.
In his remarks on the latest development, the ZSE CEO said, ZSE CEO, Justin Bgoni said ‘We are excited about the new partnership with Botswana Stock Exchange and the prospect of a gateway for our companies to raise hard currency on the exchange”
The deal is expected to help foster the prosperity of their financial markets, promote cross border investments, cross border listings and explore further opportunities for co-operation between the 2 institutions.
EQUITY AXIS NEWS
