Edgars to migrate to Victoria Falls Stock Exchange

by | Feb 8, 2024 | Business | 0 comments

Edgars to migrate to Victoria Falls Stock Exchange

Nqobile Bhebhe

RETAIL clothing giant, Edgars Stores Limited, has revealed its intention of migrating to the United States dollar-denominated Victoria Falls Stock Exchange (VFEX), and is on course to become the first clothing entity to list on the bourse.

The intended move from the Zimbabwe Stock Exchange (ZSE) is, however, subject to shareholder approval and the granting of all necessary regulatory authorisations.

In a cautionary notice, new company secretary, Chipo Mafunga said the directors have since approved the de-listing of the firm from ZSE.

“The Directors of Edgars Stores Limited wish to advise all shareholders and the investing public that the board, subject to shareholder approval and the granting of all necessary regulatory authorisations, has approved the de-listing of the company from the Zimbabwe Stock Exchange, immediately followed by its listing on the Victoria Falls Stock Exchange,” she said.

She noted that shareholders will be apprised on the transaction once all regulatory processes have been finalised.

Edgars Stores Limited engages in the retail of clothing, footwear, textiles, and accessories in Zimbabwe, and the company operates through six segments: Edgars Stores Retail, Jet Stores Retail, Manufacturing Carousel, Micro Finance Club Plus, Corporate Head Office, and Financial Services.

In addition, it provides microfinance loans to the lower — to middle-income customer group.

Once the transaction sails through, Edgars will join a trail of other counters that have migrated to the VFEX, on the back of its attractiveness and ability to increase the visibility of a company listed on it, which can help attract new customers, suppliers and partners.

The bourse is a subsidiary of the ZSE established to kick start the Offshore Financial Services Centre (OFSC) earmarked for the special economic zone in Victoria Falls.

It is 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.

Being a US dollar-denominated exchange, the VFEX enables businesses to raise capital in foreign currency, at a time the country is still battling forex shortages.

Investors who participate in the VFEX benefit from the ability to move their capital and dividends in and out freely, low transaction costs, tax incentives that include a five percent dividend withholding tax for foreign investors and exemption from capital gains withholding tax for all investors and minimal currency risks.

Listed entities cut across mining, property, banking and hospitality sectors.