Old Mutual shifts secondary listing to VFEX

Old Mutual Limited will migrate its secondary listing in Zimbabwe from the Zimbabwe Stock Exchange (ZSE) to the United States dollar-denominated Victoria Falls Stock Exchange (VFEX) citing the latter’s growing scale and liquidity as a viable alternative trading platform.

The migration, which is subject to regulatory approvals, will restore trading access for Zimbabwean shareholders after Old Mutual’s shares have remained suspended from the ZSE since June 2020.

The suspension followed a Government directive halting trading on the ZSE, including Old Mutual shares, to address concerns over an implied exchange rate and market instability.

Although trading resumed in August 2020, Old Mutual remained suspended.

Since then, the group has engaged Government, regulators and the country’s exchanges in pursuit of a solution to resume trading or establish an alternative platform.

In an update, the company expressed appreciation to the Government, the ZSE and the VFEX for supporting efforts that have culminated in the proposed migration.

Old Mutual said its board believes the VFEX has matured into a sufficiently liquid and scalable market capable of supporting the group’s secondary listing.

“The Old Mutual Board of Directors is of the view that the VFEX has come into its own and developed sufficient scale and liquidity as a viable alternative trading platform to the ZSE and accordingly supports the migration of Old Mutual’s secondary listing from the ZSE to the VFEX (‘the Migration’) and has therefore resolved to proceed with the Migration, subject to the requisite regulatory approvals,” the company said.

Old Mutual Group chief executive officer Mr Jurie Strydom said the migration was aimed at restoring market access for shareholders while enhancing investment visibility.

“This migration is about restoring choice and visibility of investment exposure to Old Mutual for our Zimbabwean shareholders.

“We are committed to providing a viable, regulated pathway for shareholders to trade their shares, or to continue holding them and receive dividends as and when declared and benefit from exposure to the market value of Old Mutual shares.”

He said the VFEX had evolved into a credible marketplace capable of supporting large corporates.

“The VFEX has come into its own and now developed sufficient scale and liquidity as a viable alternative trading platform to the ZSE. We are confident this move is in the best long-term interests of all our stakeholders,” said Mr Strydom.

Old Mutual Zimbabwe chief executive officer Mr Samuel Matsekete said the migration reflected constructive engagement with Government and reinforced the company’s commitment to Zimbabwe’s financial markets.

“This migration has been achieved through constructive dialogue with the Government of Zimbabwe and demonstrates our commitment to contribute to the strengthening of financial and capital markets in Zimbabwe.

“We are committed to aligning Old Mutual’s corporate strength to drive sustainable economic growth into the future,” he said.

The proposed migration is expected to further enhance the stature of the Victoria Falls Stock Exchange, which has steadily positioned itself as Zimbabwe’s premier US dollar-denominated securities market.

Since its launch in 2020, the VFEX has attracted a growing number of listings from companies seeking access to foreign currency-denominated capital, enhanced investor confidence and greater market visibility.

The move further strengthens the growing appeal of the VFEX, which continues to attract companies seeking a US dollar-denominated trading platform with improving liquidity and access to both local and international investors.