- The company's shares will lastly be traded onZSE today
- A trading halt is effective tomorrow, the 11th
- Delisting is on Thursday, 13th
Harare- Diversified agricultural concern, Zimplow Holdings Limited's shares will lastly trade on the Zimbabwe Stock Exchange (ZSE) today and it will be listed on Friday on the US dollar-denominated bourse, VFEX.
In a circular, ZSE said it will institute a trading halt on Zimplow shares effective Tuesday, 11 July 2023 to allow for the settlement of shares.
“Investors will not be able to buy or sell Zimplow Holdings Limited's shares during the period the halt is in effect,” read a circular released by ZSE.
Following the implementation of the halt, Zimplow Holdings Limited will be delisted from the ZSE on Thursday, 13 July 2023 and subsequently listed on VFEX on Friday, 14 July 2023.
Despite liquidity challenges, VFEX is attracting a lot of companies due to a busload of benefits I outlined in my last week’s article here http://bitly.ws/KRUQ.
The departure of companies from ZSE to VFEX could have a negative impact on the ZSE. The ZSE has faced challenges in recent years, including a decline in trading volumes and liquidity, as well as difficulties in attracting new listings.
The departure of companies to the VFEX could further reduce trading volumes and liquidity on the ZSE, as investors may shift their focus to the new exchange. This could make it more difficult for the ZSE to attract new listings and could lead to a reduction in the value of the companies listed on the exchange.
If the VFEX is successful (which already boasts 12 listings) in attracting new listings and investment, this could further reduce the attractiveness of the ZSE to investors and companies, which could exacerbate the decline in trading volumes and liquidity on the exchange.
However, it is worth noting that the establishment of the VFEX could also have positive spillover effects for the ZSE and the broader Zimbabwean economy. If the VFEX is successful in attracting new investment and promoting economic growth, this could have a positive impact on the ZSE and the broader Zimbabwean economy, as increased economic activity could lead to increased demand for goods and services, as well as increased investment opportunities.
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