Zimplow Holdings, a company that makes and distributes agricultural equipment, is delisting from the Zimbabwe Stock Exchange (ZSE) after losing US$60 million in value. This loss was caused by the depreciation of the Zimbabwe dollar compared to the US dollar, which resulted in Zimplow’s market capitalisation dropping by 88.67% from its 2021 valuation. Since its reintroduction in 2019, the Zimbabwean dollar has been experiencing a significant depreciation.
Zimplow announced its delisting from the ZSE, and other companies have also delisted and moved to the Victoria Falls Stock Exchange (VFEX), such as Bindura Nickel Corporation, National Foods Limited, Simbisa Brands, and others. Zimplow said:
The directors of Zimplow Holdings Limited (the company) wish to advise all shareholders and the investing public that the board has approved the delisting of the company from the Zimbabwe Stock Exchange, immediately followed by its listing on the Victoria Falls Stock Exchange. Further details of the transaction will be provided to shareholders once all regulatory processes have been finalised.
Zimplow has joined other companies in seeking a listing on the VFEX to protect the value of their shares that were depreciating on the Zimbabwe Stock Exchange (ZSE) due to the falling Zimbabwean dollar.
Zimplow’s loss in value caused a transporter, Unifreight Africa Limited, to report losses in its Zimplow shares. Zimplow’s last trading update indicated that value preservation was a top priority, and the company planned to focus on exporting through its subsidiaries Barzem, CT Bolts, and Powermac. The challenging trading environment continued to put pressure on customers, who were prioritizing value preservation over expansion.
Zimplow also stated that the upcoming rainy season would increase demand for their products and services in the agriculture cluster. The company also expects growth in their logistics, automotive, mining, and infrastructure clusters due to national strategic development and output growth in the mining sector. Value preservation, volume growth, and cost efficiency remain top priorities for the company.