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Enacy Mapakame
The Zimbabwe Stock Exchange (ZSE) says the listing of Zimplow Holdings Limited the Victoria Falls Stock Exchange (VFEX) dovetails into the bourse’s growth projections and plans to transform the exchange into a magnet for capital and regional financial services hub.
This comes as the world over, economies leverage on capital markets for economic growth.
Speaking at the listing ceremony for the diversified logistics, agriculture and earth moving equipment supplier in Victoria Falls on Friday, ZSE chairperson Mrs Caroline Sandura said the listing was also a sign of confidence in the US dollar-denominated exchange, as it pushes towards its aspirations of attracting foreign capital via the resort town based exchange, which has been designated as a special economic zone for financial services.
Capital markets the world over are recognised as enablers for funding businesses, infrastructure projects and general economic growth.
“The listing of Zimplow today is good for the market and an indication of the VFEX’s growth projections and a sign of confidence in the exchange,” said Mrs Sandura.
“The VFEX will strategically place the town of Victoria Falls into a financial services hub in the region as this town has been set for a special economic zone. And we expect more listings as we move towards achieving this,” she said.
Experts in the capital markets opine that one of the first steps towards this would be for the Government to also take a leading role in promoting the exchange into a by issuing Bonds and Treasury Bills as well as encourage state-owned enterprises to list on the US dollar-denominated exchange, subsequently making it a vibrant exchange.
These also say can take a leaf from the Hong Kong Stock Exchange (SEHK) as an example that boasts 96 China state-owned enterprises and 50 have at least one subsidiary listed on that stock exchange.
Of the 10 largest initial public offering (IPO) funds raised by newly Hong Kong–listed companies since 1986, eight were Chinese state-owned financial institutions and enterprises and it is now home to 250 H-share Chinese companies and another 171 red chip firms that are controlled by the Chinese state with a combined market capitalisation for these entities pegged at HK$12 trillion (about US$1,54 trillion), more than one-third of SEHK’s total market capitalisation.
H-shares are shares of Chinese mainland companies that are listed on the Hong Kong Stock Exchange or other foreign exchange.
In light of this, the VFEX could be turned into a vibrant capital markets hub critical in funding the country’s growth through resourcing the Victoria Falls Offshore Centre as well as issuing rules that include low exchange controls and foreign ownership. The listing of Zimplow, therefore, Mrs Sandura said, was in line with these aspirations as it became the 14th issuer since the exchange was launched three years ago.
Zimplow chairman Mr Godfrey Manhambara said the listing of the company came at an opportune time when the company is looking at boosting its regional profile and penetrating the export market.
“We are looking for visibility and this listing also supports our export drive,” he said. However, Mr Manhambara emphasised migration to the new bourse helped enhance transparency and accountability. Zimplow will start trading effective the 17th.
Online Reporter