Omega Ukama 
PADENGA Holdings (Padenga) lost 47 percent in early trades on the Victoria Falls Stock Exchange (VFEX), to close Tuesday at US$0,19.
Shares of the crocodile skins processor started trading on the recently launched exchange last Monday at US$0,36 after it migrated from the ZWL$-denominated Zimbabwe Stock Exchange, a move management hopes will improve the company’s ability to raise capital in foreign currency.
“The VFEX will allow Padenga to raise capital… from a wider and deeper potential market, to expand existing business… establish new businesses.
“It will also fund acquisitions… and its gold mining subsidiary Dallaglio Investments,” Padenga said in a circular to shareholders pre-migration.
The company grew by supplying crocodile skins to luxury brands in Europe, but mining now accounts for 57 percent of its revenue.
Meanwhile, SeedCo International, the only other listing on VFEX, was unchanged during the period under review, closing at US$0,25.
Interest in the VFEX seems to be growing as the US$-denominated market is anticipating a third listing in September.
The VFEX was launched last October, with authorities hoping it would shore-up foreign capital inflows following years of massive investor flight.
“… hopefully by September we will have a third counter. So, we are making progress and more counters will join,” Finance minister Mthuli Ncube said during a recent interface with the insurance and pensions industry.
The minister did not reveal the identity of the company expected to list next, but exchange principals have said they are negotiating with “several” entities that have shown interest.
In May, the Treasury unveiled measures that include an incremental exports scheme allowing entities listed on the VFEX to retain 100 percent of their proceeds in foreign currency, on volumes above their monthly average.
The measures are meant to attract listings on the exchange, among other objectives.
The country had previously restricted retention of export earnings in foreign currency to 60 percent, with the balance paid in local currency at the official exchange rate.
The VFEX says it is also planning to introduce a low capital board to encourage listings.
Current rules stipulate a minimum subscribed capital of US$3 million.
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