ZSE hikes listing fees by 456%

LIVINGSTONE MARUFU

The Zimbabwe Stock Exchange (ZSE) has hiked the annual listing fees by 456% a move analysts say was exorbitant for penny stocks, Business Times can report.

The high capitalised  companies are now going to pay ZWL$25m from ZWL$4.5m  while the fees for the low capitalised firms has been pegged at ZWL$2.5m from ZWL$450 000.

The country’s  capital markets regulator, the Securities  and Exchange Commission of Zimbabwe (SECZ)  approved the fees.

SECZ also approved  new listing fees, documentation fees, ruling fees, sponsor fees and fees applicable to authorised advisors under Statutory Instrument 28 of 2022, which was gazetted a fortnight ago.

ZSE chief executive officer Justin Bgoni justified the fees increase.

“The fees increased at an average 456% from last year’s fees but the market capitalisation also increased at an average rate of 600% which means the fees are very fair and we are way still behind,” ZSE said.

However, some executives of listed companies who spoke to Business Times this week  said the new listing fees were  exorbitant.

This, they said, could affect penny stocks.

The new law also stipulated that where there is no price attributable to the securities, they will be deemed to have a value calculated by multiplying the number of securities listed by the closing price on the first day of trading and in respect of each class of security listed.

It also stipulates that an annual listing fee shall be payable (except during the calendar year in which the first listing of securities is granted) based on the market capitalisation value as at  November 30 of the preceding year and the initial, annual and additional listing fees will be reviewed on a quarterly basis on  March 31, June 30  and  September 30 respectively.

Where listing is done through a number of tranches, the first five tranches issued under a programme in a year will be billed at ZWL$100,000 per tranche.

The next ten tranches will be billed at ZWL $50,000 per tranche, and all tranches in excess of twenty under a programme in a year will be billed $25,000 per tranche.

Annual listing fees for debt securities shall be charged at 0.0125% of the outstanding amount subject to the following minimum  of  ZWL$200 000 and  maximum  of ZWL$3 600 000.

If the legal entity issuing a bond is already listed on the ZSE then the issuer will pay 50% of the Applicable Annual Debt Listing Fees.

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