Leading financial services provider, First Capital Bank Limited (FCA) will cease trading shares on the Zimbabwe Stock Exchange (ZSE) on May 12 amid plans to commence trading on the Victoria Falls Exchange almost a week later.
In an update, ZSE chief executive officer, Justin Bgoni revealed the latest development ahead of the closure of the week.
“ZSE hereby notifies the investing public that the last day of trading in FCA shares on the ZSE is Friday, 12 May 2023.A trading halt on FCA shares will therefore be effected on Monday, 15 May 2023 to allow for the settlement of shares.
“Following the implementation of the halt, FCA will be delisted from the ZSE on Wednesday, 17 May 2023 and subsequently listed on the Victoria Falls Stock Exchange (VFEX) on Friday, 19 May 2023,” he said.
Investors will not be able to buy or sell First Capital Holdings Limited’s shares during the period the halt is in effect. The shares will start trading on VFEX on Monday, 22 May 2023.
The latest move will bring the number of VFEX listings to 10, should all regulatory processes be completed for the listing.
FCA becomes the fifth company to divest from the ZSE in less than four months after Simbisa Brands Limited, National Foods Holdings Limited, Innscor Africa Limited and Axia Corporation Limited.
African Sun and Getbucks also recently got the nod from their shareholders to delist from ZSE and list on the VFEX.
Zimbabwe’s major companies are increasingly opting to trade in the United States dollar only platform of the VFEX to raise much needed capital.
The VFEX has been offering a number of incentives which have in turn attracted listings which include access to US dollar capital to assist in capital expenditure and free repatriation of dividends and proceeds from the disposal of shares through offshore settlement for foreign shareholders.