The Zimbabwe Stock Exchange (ZSE) Limited’s plans to self-list on its main board are facing potential delays as it navigates extensive regulatory requirements.
ZSE Holdings Limited, a newly established entity created to oversee the listing, must secure key approvals and possibly amend certain regulatory provisions under S.I. 147 of 2024, which governs self-listing rules for exchanges.
The self-listing scheme, designed to streamline ZSE’s corporate structure, involves a share split, an employee share option plan, and a buyout offer for current ZSE shareholders. However, in its latest transaction update, the ZSE highlighted that these steps require regulatory clearance from bodies including the Zimbabwe Revenue Authority (ZIMRA) and the Securities and Exchange Commission of Zimbabwe (SECZim). The need to amend the self-listing regulations could further delay the process, the ZSE noted.
“While we expect these approvals to come through, there may be delays due to the need for adjustments to S.I. 147 of 2024 to allow ZSE Holdings to self-list on the ZSE Main Board,” the exchange stated in an update. The ZSE reassured shareholders that they would receive consistent updates on the progress and advised caution when dealing with their shares.
The proposed self-listing was unanimously approved by shareholders during an extraordinary general meeting on October 9, 2024. The transaction allows for a 1-to-1 exchange ratio, where each ZSE Limited share will be exchanged for a ZSE Holdings share, signalling a major shift in ZSE’s corporate structure.
According to a circular issued to shareholders, the reorganisation aims to enhance operational efficiency, improve liquidity, and unlock greater value for shareholders by establishing ZSE Holdings as a consolidated, more agile corporate entity. This move is expected to improve governance and increase the financial viability of both ZSE and its subsidiary, the Victoria Falls Stock Exchange (VFEX), which operates in U.S. dollars.
Upon completion, ZSE Holdings will serve as the primary holding company, effectively managing the shareholding transfer from ZSE Limited and VFEX, while both exchanges retain independent operations under their respective licenses. This separation will ensure regulatory compliance while positioning ZSE Holdings to introduce new financial products and services across Zimbabwe’s stock markets.
The ZSE, which operates in local currency, and the VFEX, trading in U.S. dollars, will each maintain distinct operations, allowing ZSE Holdings to support a diversified financial landscape in Zimbabwe.
