It allows companies to raise capital in a stable currency and offers tax incentives to shareholders. "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. (Reporting by Nyasha Chingono Editing by Promit Mukherjee and Barbara Lewis)
