Listed entity Padenga Holdings traded for the last time on the Zimbabwe Stock Exchange (ZSE) on Monday ahead of its listing on the Victoria Falls Stock Exchange (VFEX).
The crocodile skin supplier and now gold miner is set to delist from the ZSE on Friday, 9 July 2021 and list on the VFEX on Monday the 11th of July 2021.
While the delisting was still days away, the ZSE management has put in place a trading halt on the counter probably to guard against price distortions as investors would jostle to take positions in or out of the counter.
“Notice is hereby given that the ZSE has instituted a Securities Halt in the trading of shares in Padenga Holdings Limited (the “Issuer” or “Padenga”) with effect from Tuesday, 6 July 2021, pending its delisting from the ZSE on Friday, 9 July 2021,” reads part of the ZSE statement released Monday afternoon.
“Further that Investors will not be able to buy or sell Padenga shares during the period the Securities Halt is in effect.”
Last week, the company received shareholder approval to list on Zimbabwe’s new bourse, which trades exclusively in US dollars. It will join one other company, Seed Co International.
Padenga’s switch to the VFEX is motivated by incentives such as tax breaks and high foreign currency retention levels for incremental foreign currency earnings.
The VFEX will also give Padenga a better chance to raise foreign currency “from a wider deeper potential market, to expand existing business, acquire or establish new business and fund acquisitions.”
Foreign currency denominated capital raising initiatives on the ZSE is seen as a tough task for listed entities. The bourse also trades in the local Zimbabwe dollar.
On Monday, Padenga closed 3.08 percent up at $29.37.