MILLING giant, National Foods Holdings Limited (NFHL) says it will delist from the Zimbabwe Stock Exchange (ZSE) and switch to the foreign currency-indexed Victoria Falls Stock Exchange (VFEX) next month to bolster its expansion drive.
The deal, which has been approved by its board, is subject to a shareholder nod at an extraordinary general meeting on December 12, according to a note released yesterday.
“At the meeting held on Monday 7 November 2022, the board of directors of National Foods considered the termination of National Foods’ ZSE listing, with the intent to list the company’s shares on the VFEX by way of introduction,” said the firm.
“National Foods will have greater ability to raise capital against a dollarised balance sheet. The VFEX’s potential to become a regional exchange enhances NFHL’s opportunity to attract a diversified investor base which can assist the company in both its local and, in time, potential regional expansion initiatives.”
The firm has also been attracted by lower trading costs on VFEX, compared to those obtaining on ZSE.
It said migration from ZSE to VFEX would potentially improve its regional profile.
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“A cautionary announcement has been issued to the shareholders of National Foods informing them of the company’s intention to delist from the ZSE. The ZSE has granted authority to delist National Food's shares from the ZSE,” the statement added.
VFEX has endured a listing drought since coming onto the market in October 2020, but in the past few months has seen an improvement in listings.