Edgars Stores lists with foreign currency-indexed VFEX

Nyashadzashe Ndoro

Edgars Stores Limited resolved to terminate the company's Zimbabwe Stock Exchange listing before joining the Victoria Falls Exchange, which has favourable financial terms and regulations.

Chipo Mafunga, Edgars’ company secretary, confirmed the development in a notice to the investing public.

“The Directors of Edgars Stores Limited (the 'Company') 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 delisting of the Company from the Zimbabwe Stock Exchange, immediately followed by its listing on the Victoria Falls Stock Exchange (the ‘Transaction’),” Mafunga said.

“Further details of the Transaction will be provided to Shareholders once all regulatory processes have been finalised.

“Shareholders are therefore advised to exercise caution and consult their professional advisers when trading in the Company’s shares.”

Mafunga of Chimuka Mafunga Commercial Attorneys was appointed as company secretary of Edgars Stores, effective 1 January. She replaced Sikhumbuzo Mate, who has held that position for the last two years.

VFEX offers significant advantages, which include favourable tax incentives for investors of zero capital gains and a 5% withholding tax for foreign investors to enhance shareholder returns.

The foreign currency-indexed bourse aso offers free repatriation of dividends with proceeds from the disposal of shares through offshore settlement for foreign shareholders.

Through US dollar-denominated group financial statements, companies that list on the VFEX have efficient financial reporting compared to the ZSE, which requires companies to prepare statements in both US dollars and ZWL currencies.