4 firms face ZSE suspension

4 firms face ZSE suspension
Published: 21 July 2014
FOUR companies on the Zimbabwe Stock Exchange (ZSE) risk getting suspended from trading on the bourse over breach of listing rules.

The companies have breached their continuing obligations in terms of payment of the annual listings fees.As at July 11, ART Holdings Limited had outstanding fees of $2,000, Celsys Limited $3,000, Border Timbers Limited $13,294.25 and RioZim Limited $5,000.

According to ZSE Listing Rules, a listed company must pay its annual fees as soon as they are due.

"The fees for the companies listed above were due in June 2013 and the issuers are therefore in breach of the Listings Requirements," said ZSE chief executive officer Alban Chirume in a statement yesterday.

"Several unsuccessful attempts have been made to recover the above fees. In the event that the fees remain unsettled by July 29, 2014, the ZSE shall make an application for the suspension in the trading of the companies' shares on the ZSE."

He said payment of annual sustenance fees was part of meeting the continuing obligations to maintain a listing.

Chirume urged investors to exercise caution when dealing in the listed companies' shares.

Since the adoption of a multicurrency system in February 2009, about 29 counters have stopped trading on the ZSE either through suspending or voluntary delisting.

During the period under review, 14 counters were suspended while 15 others have been delisted from the stock exchange.

This was largely due to the liquidity constraints in the economy that has seen firms failing to raise money on the local bourse or attracting new investors to inject fresh capital.

Some of the firms that have been delisted on the ZSE include Cairns Holdings, Chemco Holdings, Interfresh, Gulliver, Interfin, Lifestyle Holdings, Phoenix Consolidated, Steelnet and financial services firm, Trust Holdings, delisted last year.

A significant number of the delisted firms failed to meet the minimum listing requirements, an indication of the volatile climate that has dogged the ZSE since dollarisation.

During the first week of January, PG Industries was suspended from the local bourse for failing to meet ZSE requirements due to a difficult operating environment.
- Oliver Kazunga I The HErald
Tags: ZSE,


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