ZIMBABWE’S largest seed producer SeedCo Limited has abandoned plans to list on the Victoria Falls Stock Exchange, despite having got shareholder approval in January this year to list on the forex- denominated bourse.
In a statement issued on Friday, SeedCo revealed that it had withdrawn the cautionary announcement after it had indefinitely suspended plans to list on VFEX.
“Shareholders of Seed Co Limited and the investing public are advised that the board has resolved to suspend indefinitely the proposal to migrate the company’s listing from the Zimbabwe Stock Exchange (ZSE) to the Victoria Falls Stock Exchange,” Seed Co said in the statement.
“Accordingly, the cautionary announcement made on January 18, 2023 is hereby withdrawn.”
The seed producer advised shareholders and the investing public that it will remain listed on the main board of the ZSE.
Had SeedCo gone through with listing on the VFEX, it would have joined SeedCo International which was the first to join in 2020.
SeedCo was certain that a VFEX listing would boost the company’s expansion plans.
This is not the first time that the company has reversed its decision to list on the forex-denominated bourse.
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Under a transaction that attracted significant market attention in 2021, Seed Co announced plans to list on VFEX, but its migration was blocked by regulators after a leading advisory firm, Imara Capital raised the red flag on the move.
Imara had expressed reservations pointing out that the listing could elbow out local investors.
However, in a statement on January 18 this year Seed Co said the VFEX listing plan was back on track after board approval, adding that further announcements would be made.
“Shareholders of SeedCo Limited and the investing public are advised that the board has approved the migration of the company’s listing from the Zimbabwe Stock Exchange to the Victoria Falls Stock Exchange,” the firm said.
“Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities. Further announcements will be made in accordance with regulatory requirements as and when there are material developments.”
In June 2021, the Pan-African seed breeder returned to ZSE, about eight months after terminating trading to pursue the VFEX listing, which never took place.
Under the deal, which was announced at the time, Seed Co was to tie up with Seed Co International Limited and list as one counter.
