TEA producer, Tanganda Tea Company Limited (Tanganda) will not delist from the Zimbabwe Stock Exchange (ZSE) to list on Victoria Falls Stock Exchange (VFEX) but will, instead, make a secondary listing on the latter.
In October, Tanganda’s board of directors announced that they would meet to discuss delisting from the ZSE for a VFEX listing.
This was after the firm lost tens of millions of dollars from its market capitalisation on the ZSE, since it listed on the bourse on February 3, 2022.
When it listed, Tanganda had a market capitalisation of US$134,29 million, which as of this Tuesday had fallen to US$35,29 million, a near US$100 million loss.
“Reference is made to the cautionary announcements published on October 28, 2024 and November 18, 2024 regarding the proposed migration of Tanganda Tea Company Limited’s listing from the Zimbabwe Stock Exchange (ZSE) to the Victoria Falls Stock Exchange (VFEX) and the subsequent capital raise by way of a renounceable rights offer to raise approximately US$7,7 million,” Tanganda said in a statement yesterday.
“Shareholders of Tanganda Tea Company Limited (the company) and the investing public are advised to take note of the following changes: The directors no longer recommend the migration of Tanganda’s listing to VFEX.
“Instead, they propose the creation of a new class of shares to be known as Class A ordinary shares, which will be subsequently listed on the VFEX as a secondary listing.”
Tanganda added that a capital raise by way of a renounceable rights offer to raise US$8 million would follow soon after the issuing, listing and allotment of Class A ordinary shares to the existing ordinary shareholders. The issuance will be in proportion to the shareholder’s stake in the company.
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“These initiatives are intended to enhance the company’s capital structure, diversify shareholder offerings, and ensure liquidity of the company’s shares,” Tanganda said.
“Further details regarding the transactions will be provided in a circular to shareholders that is being finalised. The transactions, if successful, may have a material effect on the company’s share price.”
Consequently, Tanganda advised its shareholders to exercise caution when dealing in the company’s shares.
