Mishma Chakanyuka, Staff Writer 
AXIA Corporation (Axia) says its proposed plan to list on the Victoria Fall Stock Exchange (VFEX) will enhance its access to US dollar capital to assist its capital expenditure, working capital requirements and regional expansion initiatives.
In a recent circular to shareholders, the retail and distribution group revealed its plans to delist from the Zimbabwe Stock Exchange and list on the VFEX, which is expected to be finalised in March this year.
The group’s VFEX announcement comes at a time when several Zimbabwe Stock Exchange (ZSE) listed companies have expressed interest in listing on the US dollar-denominated market.
“Axia will have a greater ability to raise capital in foreign currency to support the group’s foreign currency requirements.
“The VFEX’s potential to become a regional exchange enhances Axia’s opportunity to attract a broader investor base which would assist the company in its domestic and regional expansion drive,” read the circular.
“Furthermore, the US$ reporting requirement on the VFEX will contribute to a lower risk perception for Axia. This will provide the company with increased leverage to access other forms of finance on favourable terms.”
The group added that, apart from the aforementioned, its planned VFEX listing also includes lower trading costs and increased liquidity, an offshore settlement that allows for efficient dividend repatriation, and tax incentives for Axia shareholders, among others.
According to the circular, the VFEX listing will also enhance efficient financial reporting through US dollar denominated group financial statements, which will contribute to lower risk perception for Axia and increase its leverage to access other forms of finance on favourable terms.
Meanwhile, the group maintains a positive long-term view and continues to seek opportunities to preserve and grow shareholder value despite these hurdles.
“In the 2023 financial year, the group will focus on the execution and completion of the bedding and lounge suite production facilities, the opening of new retail stores and the optimisation of major distribution agencies in Zimbabwe and the region,” Axia said.
The allure of the US dollar capital and some statutory incentives have seen the budding exchange garnering interest among issuers, particularly relative to the country’s main bourse — the ZSE.
newsdesk@fingaz.co.zw
