HARARE – Zimbabwe’s foremost clothing manufacturer and retailer, Edgars Stores Limited, has officially been delisted from the Zimbabwe Stock Exchange (ZSE) as of March 27, 2024.
The company has now set its sights on making its debut on the Victoria Falls Stock Exchange (VFEX), which is dominated by the US dollar unlike the ZSE which is dominated by the local currency.
ZSE chief executive officer Justin Bgoni confirmed in a Tuesday statement the clothing chain was delisting and making a temporary halt of trading the company’s shares.
“ZSE hereby notifies the investing public that the last day of trading in Edgars Stores Limited (EDGR.ZW) shares on the ZSE is Wednesday, 27 March 2024.
“The ZSE will therefore institute a trading halt on Edgars Stores Limited shares effective Thursday, 28 March 2024 to allow for the settlement of shares.
“Pursuant to the company’s Extraordinary General Meeting (EGM) held on Friday, 25 March 2024, the ZSE has requested authorisation from the Securities and Exchange Commission of Zimbabwe (SECZIM) to delist Edgars Stores Limited from the ZSE and subsequently list it on VFEX.
“During the halt period, investors will not be able to buy or sell Edgars Stores Limited shares. Trading of the shares is expected to commence on VFEX on Monday, 08 April 2024 subject to SECZIM approval,” read the statement.
This move marks a significant transition for Edgars as it shifts from the Zimbabwean dollar-denominated ZSE to the more lucrative US dollar-denominated VFEX.
Edgars Stores Limited aims to leverage the stability and international reach offered by VFEX.
Earlier this year, Edgars Stores Limited faced a multitude of challenges that jeopardized its long-term stability.
The company, once a thriving retail giant, struggled amid a tough economic climate characterised by macroeconomic instability and fierce competition from the informal market.
Edgars Stores Limited acknowledged difficulties in competing with the flexibility and lower prices offered by informal traders, who often source goods outside official channels.
Zimbabwe’s economic woes, including high inflation and an unstable exchange rate, further hampered effective planning for the company.
The volatile currency fluctuations disrupted pricing strategies and significantly impacted Edgars Stores Limited, whose operations depend heavily on customers with disposable income.
Many Zimbabweans, however, grapple with financial hardships due to the prevailing economic situation, resulting in a decline in spending power and subsequently affecting the company’s sales figures.
In a recent leadership overhaul, Edgars Stores Limited’s new board opted for a debut listing on VFEX, seeking to navigate the challenges and capitalize on the benefits offered by the US dollar-dominated exchange.
