gtag('config', 'UA-12595121-1'); Nedbank Zimbabwe heads for VFEX – The Zimbabwe Mail

Nedbank Zimbabwe heads for VFEX

Sibongile Moyo
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FINANCIAL services outfit, Nedbank Zimbabwe said on Friday it planned to list on the Victoria Falls Stock Exchange (VFEX) on November 18, becoming the first lender to trade its stock at the waterfall since the bourse opened two years ago.

VFEX, which trades exclusively in foreign currency, recently attracted an upsurge in investor interest after enduring a frustrating 24 months marked by investor caution.

Caledonia Mining Corporation, the diversified Padenga Holdings, Bindura Nickel Corporation and hybrid seed technology outfit, Seed Co International are the only counters currently trading their stocks on VFEX.

But last month, pan African restaurant chain, Simbisa Brands said it would be delisting from the Zimbabwe Stock Exchange and switch to the waterfall.

Nedbank is a unit of the Johannesburg Securities Exchange-listed Nedbank Group, whose footprint spans across southern Africa.

 “Shareholders of Nedbank Group Limited on the Zimbabwe branch register (local shareholders) who are interested in trading their equity securities in Zimbabwe may elect, by completing (a) form of acceptance, to convert their Nedbank shares into Nedbank depository receipts to be issued and listed on the Victoria Falls Stock Exchange,” a prelisting statement sent to shareholders said.

“Zimbabwe Depository Receipts (ZDR) will be issued in Zimbabwe through a private placement sponsorship under Corpserve Nominees as a non-issuer sponsored facility. This means that Nedbank Group Limited will not be the issuer of Nedbank ZDRs on the VFEX and will thus not play an active role in the proposed listing. Nedbank has, however, provided a letter of no objection for the establishment of a non-issuer-sponsored facility.

“Shareholders, who do not wish to participate in this ZDR initiative, will not have their shares transferred out of Corpserve Nominees as ZDRs ie, their Nedbank shares will continue to be held under Corpserve Nominees in South Africa. For shareholders who wish to participate in this ZDR initiative, Corpserve Nominees will issue the Nedbank ZDRs on the VFEX, which in turn will provide the trading platform for the Nedbank ZDRs. The resultant ZDR register will be managed by Corpserve Registrars, who in turn will co-ordinate with the main register in South Africa on both the ZDR movements and corporate actions being generated against the underlying shares on the South African register at the appropriate time.”

Mauritius Finance, a leading financial services outfit headquartered in St Louis, Mauritius, said at VFEX was well placed to drive foreign direct investments into Zimbabwe by attracting high-quality counters. – The Standard