Africa-Press – Zimbabwe. Axia Corporation Limited, a retail and distribution group has been given the permission to delist from the Zimbabwe Stock Exchange (ZSE) and to list on the forex-denominated Victoria Falls Stock Exchange (VFEX).
In a notice to shareholders, the company revealed that three resolutions were passed for the company to delist from ZSE and list VFEX at an extraordinary meeting held last week. The notice stated:
Shareholders are advised that all resolutions put to the vote at the extraordinary general meeting of shareholders of Axia Corporation Limited held on Thursday 2 February 2023 were passed.
The company said the reasons for the latest move include:
i). access to US dollar capital to assist in its capital expenditure, working capital requirements and regional expansion initiatives,
ii). free repatriation of dividends and proceeds from the disposal of shares through offshore settlement for foreign shareholders,
iii). favourable tax incentives for investors of zero capital gains tax and a 5% withholding tax for foreign investors to enhance shareholder returns
iv). lower trading costs of 2.12% compared to 4.63% on the ZSE, which would enable Axia to make savings and retain more value for shareholders.
It said listing on the VFEX would also result in a US-dollar valuation of Axia, allowing shareholders to realise the true value of their holdings and provide a more accurate benchmark of the stock’s performance.
Axia also said listing on the VFEX would work in:
1). mitigating valuation volatility;
2). enhancing the company’s regional profile and commercial standing;
3). strengthening the company’s prospects for both local and regional expansion;
4). ensuring more efficient financial reporting through US-dollar denominated group financial statements, which will contribute to lower risk perception for the company as well as increasing the company’s leverage to access other forms of finance at favourable terms.
Axia will join Padenga Holdings Limited, Simbisa Brands Limited, SeedCo, Caledonia Mining Corporation, Bindura Nickel Corporation Limited and National Foods to list on the VFEX.
The flight of companies to VFEX comes at a time when the ZSE has become one of the worst-performing bourses in the region mainly due to the depreciation of the Zimbabwe dollar.
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