ZSE halts Innscor shares trading
THE Zimbabwe Stock Exchange has halted trade in Innscor Africa Limited shares, with the last day of trade being 17 February 2023, enabling the company to trade on the Victoria Falls Stock Exchange (VFEX).
The halt would be effective on 20 February 2023 to allow for the settlement of shares.
“Following the implementation of the halt, Innscor Africa Limited will be delisted from the ZSE on Thursday, 23 February 2023 and subsequently listed on the Victoria Falls Stock Exchange (VFEX) on Friday, 24 February 2023,” said the statement.
The group would start trading its shares on the foreign currency bourse next week on 27 February 2023.
Innscor Africa announced its intentions of delisting on ZSE and listing on VFEX last year in December.
“The Directors of Innscor Africa Limited wish to advise all shareholders and the investing public that the Board has approved the delisting of the Company from the Zimbabwe Stock Exchange, immediately followed by its listing on the Victoria Falls Stock Exchange.”
The Group delisted on the ZSE as the company believed that listing on VFEX would benefit existing and future shareholders.
“The VFEX provides favourable tax incentives for investors enabling the optimisation of returns. These include zero capital gains tax on VFEX resident and non-resident investors and a 5% dividend withholding tax for foreign investors,” the group said in their circular to shareholders.
Like other securities that have migrated from ZSE, Innscor moved to VFEX to gain access to USD capital, which would enhance the group to grow organically and inorganically.
Innscor was pushed to migrate to VFEX because of the cost efficient trading that is on the USD currency market.
“Trading on the VFEX results in lower trading costs; in aggregate, these amount to 2.12% compared to 4.63% on the Zimbabwean Stock Exchange,” said Addington Chinake the chairman of the group.
Chinake said these benefits and others would help boost Innscor Africa’s regional profile and commercial standing, which would in time improve the Group’s regional expansion prospects.