ZSE demands upto $22m listing fees annually

Business Writer

Zimbabwe Stock Exchange’s largest listed firms by market capitalization, will have to fork out as much as $22 million in listing fees annually according to Statutory Instrument 28 of 2022 gazetted on Friday.

The new fees have since been approved by the Securities and Exchange Commission of Zimbabwe (SECZIM) in terms of section 65(3) of the Securities and Exchange Act [Chapter 24:25].

According to the new fees schedule, listed firms with a market capitalisation above $100 billion will have to pay $22 050 000 in listing fees.

This is a 425 percent increase from the $4,2 million they were previously paying.

The jump in listing fees is also reflective of the rally witnessed on the ZSE where market capitalisation jumped from $1,317 trillion at the end of December to the current $1,863 trillion.

As of February 18, 2021, firms that were obliged to pay the highest fees were Delta, Econet, Cassava, National Foods and Innscor.

The least capitalised companies, with a market capitalisation of $500 million will pay just $2 362 500. Zeco and Medtech fall into this category.

SECZIM also approved listing fees for debt securities where debt instruments with a nominal value of between $3 000 000 001 and $4 billion will pay $3,6 million in listing fees.

Before the latest upward review, the largest debt instruments were obliged to pay $600,000 in listing fees.

“If the legal entity issuing a bond is already listed on the ZSE then the issuer will pay 50 percent of the Applicable Annual Debt Listing Fees,” reads part of SI 28 of 2022.

“The initial and annual debt listing fees will be reviewed on a quarterly basis on 31st March, 30th June, and 30th September.”

Exchange-Traded Products Listing Fees (Excluding VAT) have been put at $7 500 000.

The initial and annual Exchange Traded Product listing fees will be reviewed on a quarterly basis on 31st March,

30th June and 30th September.

This comes as the ZSE now has two ETFs listed on the bourse with a third one expected to come on board in the first quarter of the year.