This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXNPEC0Q0MJ_M.jpg
HARARE (Reuters) – The value of stocks on Zimbabwe’s dollar-only bourse has jumped by 85% since the start of the year to more than $1 billion, its CEO told Reuters on Tuesday, adding he anticipated continued growth.
The Victoria Falls Stock Exchange (VFEX) was set up in 2020 to attract global investors targeting export-oriented companies in Zimbabwe and other countries in the region and offers a hedge against a fast-depreciating local currency.
It allows companies to raise capital in a stable currency and offers tax incentives to shareholders.
“The growth trajectory on VFEX has been tremendous and we anticipate continued growth till year end,” CEO Justin Bgoni said.
The market’s value has grown by 85% since the beginning of this year, he said, adding Zimbabwean investors have participated in capital raises by foreign companies in recent weeks.
“Zimbabwean investors oversubscribed by more than 50% for the Caledonia Depositary Receipts. Caledonia raised more funds equivalent to $7.8 million than had been originally planned [$5 million],” he said.
Last month, the miner raised an additional $5.8 million through a placement on the VFEX.
South African miner Tharisa’s bond issue for its Karo platinum mining project in Zimbabwe raised $32 million, the largest capital raise to date on VFEX, exceeding the minimum requirement of $25 million set by the mining company, Bgoni said.
VFEX has recorded 12 listings since its launch and expects more as the market gains traction, he said.
