Zimbabwe Stock Exchange (ZSE) listed company, Padenga Holdings Limited (PHL) has announced that it will move its listing from the ZSE to the Victoria Falls Stock Exchange (VFEX) for more foreign currency, BusinessMail can report.
PHL’s sole business is the production and sale of crocodilian skins and meat. Padenga operates three farms located on the shores of Lake Kariba in Zimbabwe, producing premium quality skins and meat for export to Europe and Asia.
PHL stock closed its last trading day (Friday, June 11, 2021) at 31.4377 ZWL per share on the ZSE, recording a 8.39% drop from its previous closing price of 34.3179 ZWL. PHL began the year with a share price of 23.3214 ZWL and has since gained 34.8% on that price valuation, ranking it 46th on the ZSE in terms of year-to-date performance.
In the first quarter of 2021, PHL business was subdued especially by the export proceeds retention policy which the central bank introduced. Exporters, including miners, currently keep 60% of their foreign earnings in hard currency, while 40% is sold to central bank at the official exchange rate leaving companies like PHL with reduced foreign currency to meet forex dominated commitments.
Also, Dallaglio’s gold sales volumes for the first quarter decreased by 24% to 138kgs from 183kgs achieved same period last year.
According to Padenga, VFEX will allow it to raise capital in foreign currency from a wider and deeper potential market, to expand existing business, acquire or establish new business and fund acquisitions for both the company and its gold mining subsidiary, Dallaglio Investments.
In its recent statement, PHL announced that its shareholders are to meet at an Extraordinary General Meeting on July 2 to decide on the proposal.
“The migration of the listing from the ZSE to the VFEX is driven by the need to benefit from the incentives articled by the Minister of Finance and Economic Development, and has not been initiated by any shareholder per se, and will not prejudice minorities,” Padenga said.
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