Source: Zimbabwe’s dollar-only bourse poised for further growth | Reuters
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.
“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.
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