Axia to migrate to Vic Falls Stock Exchange

Enacy Mapakame

Specialty retail and distribution company, Axia Corporation Limited, is set to migrate to the Victoria Falls Stock Exchange (VFEX) as more businesses set sights on the USD-denominated exchange.

Axia’s board has already approved the transaction, which will see the group delist from the main bourse, the Zimbabwe Stock Exchange (ZSE).

“… Axia wishes to advise all shareholders and the investing public that the Board has approved the delisting of the Company from the Zimbabwe Stock Exchange (ZSE), immediately followed by its listing on the Victoria Falls Stock Exchange.

“Further details of the transaction will be provided to shareholders once all regulatory processes have been finalised,” said the group in a notice to shareholders.

Axia operates within the specialty retail and distribution sector with three operating business units, namely TV Sales & Home (TVSH), Transerv and Distribution Group Africa (DGA). TVSH is a leading furniture and electronic appliance retailer with sites located countrywide.

The group follows the likes of Simbisa, which has already listed on the Victoria Falls based exchange while National Foods will list on the exchange on December 23, 2022 while micro-finance firm – GetBucks’ board has also approved its migration from ZSE.

Other counters that have migrated from the ZSE to VFEX are SeedCo International Limited, Padenga Holdings and Bindura Nickel Corporation.

Experts in the capital markets say more companies are expected to move to the VFEX as they seek to unlock value, increased liquidity and raise capital in foreign currency for their various projects.

VFEX on its part is offering a raft of incentives including tax exemptions on capital gains and the ability to repatriate funds from a country where foreign exchange is in short supply to attract global capital.

Meanwhile, Axia’s flagship – TV Sales & Home recorded a 19 percent decline in volumes for the first quarter to September 30, 2022, compared to same period last year.

The decrease was a result of the restrictive pricing pressures experienced in the first two months of the quarter.

However, the business opened two more stores in Harare as part of the group’s focus on growth initiatives with plans underway to increase the store network during the remaining part of the financial year.

While the retail business experienced depressed demand during the first two months, the manufacturing businesses were concurrently affected.

At Transerv, volumes were 9 percent down compared to the comparative period as the business was mostly affected by pricing pressures in July 2022 although the business opened three new stores during the quarter with plans underway to open three more new stores during the later part of the second quarter.

DGA Zimbabwe recorded volumes went down 27 percent below the prior comparative period as a result of the dampened demand in the formal sector and management’s decision to stop supplying some customers to manage the risk on the extent of debtor balances.

“Management has increased focus on exploiting opportunities from economic activities in the informal business sector and continues to safeguard and grow shareholder value by embarking on projects that generate positive cash flows and achieve the required returns,” said Axia in a review for the quarter.

At DGA Region, trading remained positive in Zambia while Malawi experienced a 27 percent volume decline due to currency depreciation.