NDAMU SANDU
The curtain comes down on 2021 next week, capping a year in which the bulls were in full force on the Zimbabwe Stock Exchange (ZSE) with market capitalisation breaching the trillion dollar mark on the back of a stellar performance by heavy caps.
Market capitalisation began the year at ZWL$310,386,480,000 on January 4 and was ZWL$$1,180,433,783,270.15 on December 21.
VFEX PULLING POWER
The dollar-denominated Victoria Falls Stock Exchange (VFEX) more than exceeded expectations with three listings in 2021 as companies trekked to the bourse to capitalise on incentives rolled by fiscal authorities as they kick start the Offshore Financial Services Centre earmarked for the special economic zone in Victoria Falls.
In July, Padenga dumped the Zimbabwe Stock Exchange for VFEX to raise capital in foreign currency for expansion.
In a statement, the crocodile breeder and gold miner said the decision to migrate was driven by the need to benefit from the incentives articled by the Minister of Finance and Economic Development.
Caledonia Mining Corporation listed on VFEX on December 2. Its offer to raise US$5m was oversubscribed due to “positive investor appetite.
It had offered 623,050 units at a price of US$ 12.64 per issue.
The offer was oversubscribed and the miner resolved to take additional 228,575 Zimbabwean Depository Receipts, representing US$2,889,191.88.
Bindura Nickel Corporation joined the bourse on December 17. What could be worrying for authorities is that Old Mutual and PPC are still to join the bourse.
Government last year ordered the suspension of dual listed Old Mutual, PPC and Seed International shares from trading at the Zimbabwe Stock Exchange arguing their stocks had become vehicles for repatriating investment out of the country, fuelling currency distortions and a spike in exchange rate.
It decreed that the counters should trade on a foreign currency only bourse.
It was a busy year for VFEX chief executive officer Justin Bgoni and his team.
In September, the bourse signed a Memorandum of Understanding with the Dubai Gold and Commodities Exchange (DGCX) to pave the way for commodities trading.
Under the agreement, the DGCX will extend technical support, knowledge and skills to VFEX, with the ultimate aim of establishing an international commodities exchange in Zimbabwe.
VFEX will seek support from the DGCX in framing a clearing and settlement commodities exchange framework.
The collaboration will also pave the way for possible investments by DGCX into the VFEX Commodities Exchange.
VFEX also signed an MoU with the ZSE and the Tobacco Industry and Marketing Board which will see the trio fundraise for tobacco farmers and local merchants, the compilation and distribution of tobacco production and marketing data and the establishment of a tobacco derivatives market.
EFTs, THE GAME CHANGER
The Old Mutual Top 10 Exchange Trade Funds debuted on the ZSE in January with 80m units at a price of ZWL$1.
The units have been increased to over 140m and the price had risen to ZWL $5.1632 on Tuesday. The market cap has risen to $741,565,875.30 on Tuesday from ZWL$80m in January.
The ETF tracks the performance of the top 10 counters by market capitalisation.
It is credited with driving the participation of retail investors on the bourse.
NEW CSD
For the first time in seven years, another player joined the central securities depository space. ZSE was licensed to run the second CSD to challenge Chengetedzai Depository Company.
ZSE had a false start after attempt to offer discount on fees was thrown out by the Competition and Tariff Commission as unfair business practices.
REGULATORY SLAP
In November, the Zimbabwe Stock Exchange ordered a halt in the trading of securities of Cassava Smartech Zimbabwe after the tech firm failed to publish audited financial statements for a period of seven months after the end of a financial year.
In July, ZSE cancelled First Securities Private Limited’s license after the brokerage firm failed to fulfill membership obligations. First Securities was accused of not having two brokers as required by the regulations and its failure to provide a plan on when it would have been compliant.
DELTA EXPANDS TO MANICALAND
After years of persuasion, Delta Corporation finally got the opportunity to buy Mutare Bottling Company.
Econet had been clinging to the company saying it was not for sale.
The transaction was approved by the Competition and Tariff Commission
CLAREMONT GOES DUTCH
In September, the central bank approved the acquisition of a 50% shareholding in Claremont Orchards Holdings by Netherlands-based private company, Tuinbouw Zonder Grenzen B.V.
The transaction was valued at US$2m and the funds raised would be used by Ariston Holdings for macadamia and avocado orchard development.
EDGARS JOINS ZRM
In June, the Zimbabwe Receivables Marketplace Limited (ZRM) announced that it had on boarded clothing manufacturer and retailer Edgars as a buyer on the platform.
Jointly owned by the ZSE and Harare Receivables Exchange (Private) Limited, ZRM offers working capital solutions through receivables discounting and trading.
Edgars suppliers can gain access to working capital through discounting their Edgars promissory notes on ZRM, gain access to multiple financiers on the platform and access to competitively priced funding.
EARLY REDEMPTION
In July, Econet Wireless Zimbabwe gave debenture holders the nod to opt for an early redemption in local currency at the prevailing interbank rate.
The debentures were issued in 2017 and due to expire in 2023. Debenture holders that opted for early redemption were 255 with 260,772,325 debentures worth about ZWL$1.2bn.
TANGANDA TO RETURN ON ZSE
Tanganda Tea Company is set to make a comeback on ZSE, 13 years after it delisted and merged with Meikles Limited.
It was unbundled and will be listed by way of introduction.
The transaction will be done through a dividend in specie which means that existing shareholders in Meikles Limited will receive shares in Tanganda Tea Company.
Meikles Limited is engaging the Zimbabwe Revenue Authority (Zimra) for tax relief which is a condition precedent for the transaction to sail through. Tanganda was supposed to list on ZSE on December 9.
CFI BOUNCES BACK
In October, the Zimbabwe Stock Exchange (ZSE) lifted the suspension on the trading of CFI Holdings shares after the company regularised corporate shortcomings, more than three years after the company was sanctioned for its failure to comply with the free float requirements and some corporate governance-related matters under the ZSE Listing Requirements.
The group was given a moratorium of 5 years to address the free float requirements.
TAKURA ON ACQUISITION SPREE
In April, private equity firm Takura Capital seized of control of starafricacorporation after acquiring a 58% stake in the consumer staples concern.
The stake was held by the Zimbabwe Asset Management Corporation (Zamco) which had moved in 2017 and paid off banks that were closing in on the sugar processor.
Takura has a clean record of rescuing struggling firms after reviving Cairns and removed confectionery maker Lobels from the death bed.
In March, the company took over agro-processor, Interfresh Limited
MOVERS & SHAKERS
Ron Mutandagayi left ZBFH at the end of May after the two parties could not agree the way forward following the sending of the executive on forced leave on domestic violence allegations. He was succeeded by Shepherd Fungura.
At Fidelity Life, Reuben Java left to pursue personal interests. Benefit Washaya will leave NMB at the end of the year after 13-year at the helm. He was replaced by Gerald Gore.
At Lafarge Zimbabwe, Precious Nyika made a shock exit and was replaced by Geoffrey Ndugwa who was appointed last week.
Pearson Gowero left Delta at the end of June and was succeeded by Matts Valela.
At OK, Alex Siyavora retired at the end of March.
He was succeeded by marketing guru Maxen Karombo, an ex-Delta Corporation executive.
Stanley Muchenje was appointed Afdis MD with effect from April 1
