ZSE to list on July 9

Published: 26 June 2025

The Zimbabwe Stock Exchange Holdings Limited (ZSEHL) is set to list its entire issued share capital on the Zimbabwe Stock Exchange (ZSE) main board, following a strategic restructuring approved by shareholders and regulators.

The move, finalised through a scheme of reconstruction in October 2024 and recently approved by the Securities and Exchange Commission of Zimbabwe (SECZ) on June 9, 2025, positions ZSEHL as the new holding company of both the ZSE and the Victoria Falls Stock Exchange (VFEX). This restructuring allows the ZSE and VFEX to continue operating as wholly owned subsidiaries of ZSEHL.

In its pre-listing statement, ZSEHL said the listing is aimed at enhancing access to capital markets, unlocking shareholder value, and boosting brand visibility. The move is also expected to improve corporate governance and transparency by subjecting the entity to public reporting requirements.

Globally, stock exchanges generate revenue through listing fees, trading commissions, and market data services. However, ZSEHL is operating in a tough local environment marked by currency volatility, investor uncertainty, and tight capital controls. These conditions have weighed heavily on trading activity and revenue generation.

ZSEHL's revenue for 2024 declined to ZiG142.29 million from ZiG147.58 million the previous year. Coupled with a 29% surge in operating expenses, this led to a dramatic 98.13% drop in profit after tax to just ZiG1.05 million. The company's liquidity also came under pressure, with its ratio of liquid assets to short-term debt falling to ZiG1.59 from ZiG1.98, suggesting tighter financial flexibility.

Despite these challenges, ZSEHL believes that listing the holding company will provide an avenue for raising capital to fund technology upgrades, expand product offerings, and meet other operational needs. The move aligns with efforts to modernise the country's financial infrastructure and improve investor confidence.

"ZSE Limited is a licensed securities exchange providing an avenue for capital raising anchored on a multi-asset class trading platform," said ZSEHL in its statement. "The exchange offers a broad range of products and services comprising equities, exchange-traded funds, depository receipts, real estate investment trusts, fixed-income securities, data and training services, geared towards addressing investors' needs."

It also operates the ZSE Central Securities Depository, responsible for securities clearing and settlement.

ZSEHL said its listing would strengthen the ZSE's legacy, which dates back to 1894, making it one of Africa's oldest capital-raising platforms. The holding company structure is designed to enhance focus and governance across its investment arms, namely the ZSE and the VFEX.

ZSEHL's top five shareholders include the Government of Zimbabwe with a 32% stake, FBC Securities (10.26%), IH Securities (8.79%), John Richard Legat (3.73%), and Mark John Steele Tunmer (2.26%).

The listing is expected to bolster the bourse's competitiveness and reinforce its role in Zimbabwe's economic recovery and growth.
- newsday

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