Online Reporter
Nqobile.bhebhe, [email protected]
THE Victoria Falls Stock Exchange (VFEX) has introduced a new methodology for determining the market capitalisation of companies whose securities are cross-listed on the bourse and other recognised stock exchanges, in a move aimed at improving transparency, comparability and consistency in assessing the size and market standing of listed issuers.
The new methodology, effective from Thursday, will see VFEX recognise the global market capitalisation of cross-listed issuers.
Market capitalisation is the total equity value of a listed company, calculated by multiplying its prevailing share price by the total number of shares it has issued.
For cross-listed companies, the global market capitalisation approach uses the VFEX share price and the issuer’s total issued shares, rather than counting only the shares traded on VFEX, thereby reflecting the overall value of the company regardless of where its securities are listed.
In a statement, VFEX head Mr Robert Mubaiwa said the change would provide a more comprehensive measure of the value of cross-listed companies.
“The Victoria Falls Stock Exchange Limited (“VFEX”) wishes to advise the investing public and market participants that, with effect from 13 August 2026, VFEX will recognise the global market capitalisation of issuers listed on VFEX whose securities are also listed on another recognised stock exchange.
“For purposes of this notice, global market capitalisation shall be determined by multiplying the prevailing market price of the issuer’s securities on VFEX by the issuer’s total number of issued shares,” Mr Mubaiwa said.
He said the methodology was designed to capture the full equity value of an issuer, regardless of how its securities were distributed across different exchanges.
“This methodology is intended to reflect the overall equity value of the issuer, irrespective of the distribution of its listed securities across recognised exchanges.”
The move is expected to enhance the way investors, market participants and other stakeholders compare the scale and market standing of companies with a presence on multiple exchanges.
VFEX said the adoption of the methodology was also consistent with international market practices for cross-listed securities.
“The adoption of this approach is intended to align VFEX’s treatment of cross-listed issuers with market-capitalisation conventions commonly applied to cross listed securities in other jurisdictions and to promote comparability, transparency and consistency in the assessment of issuer size and market standing.”
Market capitalisation is an important indicator used by investors to assess the relative size of listed companies and can influence how issuers are classified and compared within a stock market.
The development also comes as VFEX continues to position itself as a regional and international-facing securities market, particularly through its US dollar-denominated trading environment and efforts to attract companies seeking access to international capital.
The exchange, however, retained discretion to adjust the methodology where circumstances require a different approach to ensure accuracy.
“VFEX reserves the right, where necessary to ensure a fair and accurate determination of market capitalisation, to request additional information or apply an alternative methodology.”
