Agro-processing firm, National Foods (Natfoods), will tomorrow (Friday) trade its shares on the dollar-denominated Victoria Falls Stock Exchange (VFEX) after delisting from the Zimbabwe Stock Exchange (ZSE).
ZSE chief executive officer Justin Bgoni said following the implementation of the trading halt (of Natfoods shares on ZSE investors will not be able to buy or sell Natfoods Holdings’ securities during the period the halt is in effect.
Natfoods will be the seventh company to list on VFEX after Padenga Holdings, Caledonia Mining Corporation, Seed Co International, Nedbank Zimbabwe Depositary Receipts, Simbisa Brands and Bindura Nickel Corporation.
In a recent circular, Natfoods chairman Todd Moyo told shareholders that the de-listing of Natfoods from the ZSE and the subsequent listing on the VFEX will help the company to grow within its existing portfolio as well as enter new and complementary categories.
He said listing on the VFEX facilitates the raising of US$ capital which in turn enhances the potential for Natfoods to grow “both organically and inorganically and the dispensation for foreign investors to repatriate proceeds from the disposal of shares is attractive to both existing and future investors”.
Moyo said VFEX provides favourable tax incentives for investors enabling the optimisation of returns and these include zero capital gains tax on VFEX resident and non-resident investors and a 5% dividend withholding tax for foreign investors.
In its trading update for the quarter to September 30, 2022, Natfoods reported an 18% decline in volumes to 111 000 tonnes.
The company secretary and legal counsel, Leigh Caroline Howes, said: “…The quarter was an exceptionally challenging one for the group. The decline in volumes was largely in three key categories (namely) flour, where volumes declined by 22%, maize, which registered a volume decline of 26% and stockfeeds, where volumes declined by 13%.
“The decline in flour volume was caused by affordability, with bread prices reaching as high as US$ 1.15 per loaf during the period, driven by significantly higher international wheat prices following the outbreak of war in Ukraine.”
She said Natfoods has a substantial pipeline of new projects, with a projected investment value of US$30m.
“These projects will see National Foods entering a number of new and exciting categories, whilst reducing imports of manufactured food products into the country,” she said.