Omega Ukama 
EDGARS Stores’ (Edgars) share price was up by 14,7 percent last Friday following the retailer’s announcement of its intention to delist from the Zimbabwe Stock Exchange (ZSE) and relist on the US dollar-denominated Victoria Falls Stock Exchange (VFEX).
The surge represents the most significant single-day gain for Edgars in over six months.
The company’s proposed move, pending shareholder and regulatory approval, reflects the diminishing clout of the volatile Zimdollar amid increasing dollarisation.
“Further details of the transaction will be provided to shareholders once all regulatory processes have been finalised,” a company statement said last Wednesday.
Should the move proceed, Edgars would become the 15th listing on the VFEX since its 2020 launch and the 12th to migrate from the ZSE.
Edgars’ announcement aligns with a wider trend of ZSE-listed companies shifting to US dollar accounting as the greenback dominates local transactions.
Companies making this switch cite challenges in raising capital on the ZSE and complexities associated with listing on a Zimdollar-denominated exchange.
Zimplow Holdings, one of the recent ZSE emigrants, noted a desire to “attract quality international investment” with its VFEX listing.
Chairman Godfrey Manhambara, commented, “The group seeks to harness offshore settlement options on the VFEX, thereby enabling investors to repatriate their dividends in a seamless manner, whilst effectively managing the foreign currency risk that is inherent in holding shares as a foreign investor.”
Edgars’ announcement aligns with a wider trend of ZSE-listed companies shifting to US dollar accounting as the greenback dominates local transactions.
Zimbabwe recently extended its multi-currency system until 2030, with authorities acknowledging the US dollar’s primacy in domestic business.
This environment has created substantial accounting and reporting difficulties for listed businesses grappling with Zimbabwe’s high inflation and currency volatility.
Since 2019, the reintroduction of the Zim dollar has spurred a pattern of adverse audit opinions.
Companies including Proplastics, Delta, and TSL have reacted by reporting in US dollars or expressing intent to do so.
“After monitoring the determinants of the functional currency over the last three years, the board resolved that the functional currency had changed to the US dollar with effect from October 2022,” stated Proplastics.
Edgars shares closed at $300 yesterday.
newsdesk@fingaz.co.zw
