National Foods Limited to delist from Victoria Falls Stock Exchange

NATIONAL Foods Limited, a Victoria Falls Stock Exchange listed entity has disclosed a shocking planned voluntary decision to delist from the foreign currency bourse.

The agro-processing company became the 9th listing on the foreign currency-denominated bourse when it was listed in January last year, migrating from the Zimbabwe Stock Exchange (ZSE).

In listing on VFEX, the firm said the move would help its shareholders to realise the value of their holdings provide a more accurate benchmark of the stock’s performance and mitigate valuation volatility.

It added that migration from ZSE to VFEX would potentially improve the company’s regional profile and commercial standing, strengthening the company’s prospects for further local as well as regional expansion.

An extraordinary general meeting is scheduled for 18 December.

However, barely two years after listing, it has laid a road map for delisting, potentially becoming the first counter to pull out.

In a notice to shareholders availed on Wednesday, National Foods said it is delisting from the ‘less active market,’ as it no longer requires capital from public entity markets. It further said a significant portion of its shares, specifically 75,18 percent , is held by two major shareholders, limiting the influence and participation of smaller retail investors, further supporting the rationale for delisting.

“Delisting National Foods will grant the company increased flexibility to streamline its operations and concentrate on long-term strategic objectives,” reads part of the notice.

“The Company no longer requires capital from public equity markets in the near term, reducing the advantages of maintaining a VFEX listing.

“A significant portion of National Food’s shares, specifically 75,18 percent , is held by two major Shareholders, limiting the influence and participation of smaller retail investors, further supporting the rationale for delisting.”

It further noted that delisting will enable it to redirect spending on substantial regulatory and compliance expenses to initiatives that are more closely aligned with the company’s needs.

“The proposed share repurchase offer provides an opportunity for Shareholders to access the full value of their Shares and address the liquidity constraints associated with the shares limited trading activity on the VFEX.”

However, at a time when National Foods is contemplating moving away from VFEX, there is a pipeline of companies in the process of moving their shares to trade on VFEX. These include Bridgefort and Tanganda Tea Company.

VFEX chief executive Mr Justin Bgoni earlier in the year said the bourse continues to attract listings from both domestic and foreign companies and is targeting more than six new listings by the end of 2024