GETBUCKS Microfinance Bank Limited was on Monday delisted from the Zimbabwe Stock Exchange (ZSE) after minority shareholders approved a special resolution at an Annual General Meeting last month.
The green light was given during a sixth Annual General Meeting (AGM) of the shareholders held on 31 August.
In a notice, ZSE said, “The Zimbabwe Stock Exchange Limited hereby notifies the investing public of the voluntary termination of listing of GetBucks Microfinance Bank Limited with effect from 18 September 2023.
“Following the approval by minority shareholders at an Annual General Meeting held on 31 August 2023, through a special resolution, GetBucks applied for voluntary termination of its listing on Zimbabwe Stock Exchange Limited pursuant to section 11 of the ZSE Listing Requirements.
“ As required by Section 64 (1) (a) (i) of the Securities and Exchange Act [Cap24.25], the ZSE sought and was granted permission by the Securities and Exchange Commission of Zimbabwe (“SECZ”) to delist GetBucks from the ZSE’s official list.”
The notice added that in terms of Section 15 (d) of the ZSE Listing Requirements, holders of GetBucks Microfinance Bank Limited’s securities are hereby advised that the securities can no longer be traded on the ZSE with effect from 18 September 2023.
In a recent circular to shareholders, GetBucks Company Secretary Mr Muchineripi Chigwendere detailed reasons for planned voluntary delisting.
He indicated that on December 9, 2022, the board of Directors held a meeting where they considered the termination of GetBucks Bank’s ZSE listing.
The board was of the view that in the current environment in Zimbabwe, a listing on the bourse is accruing little benefit to the company while incurring considerable costs, he noted.
“Trading of the GetBucks Bank shares has not represented a realistic valuation: as at the Last Practicable Date the Company was trading at ZWL38.50 (thirty-eight dollars and fifty cents in Zimbabwe dollars) per share which represents a market capitalisation of $44.8 billion or twenty-nine (29) times the value of shareholders equity in the business as at 31 December 2022, a valuation that makes equity capital raising initiatives difficult,” reads part of the circular.
It added that the inability to raise capital from institutional investors means that the listing has limited value in terms of a mechanism to raise capital.
Therefore, in the face of a difficult trading environment, the Board decided to propose to shareholders its delisting from the ZSE.
The entity said fees and levies charged by ZSE that are based on the market capitalisation have also become onerous expenses for it.
Due to regulatory requirements and lack of capital, it is deriving little benefits from the listing, hence the decision to opt for voluntary delisting from the bourse.
Last year, the financial service company indicated its desire to migrate the company’s shares listed on the ZSE to the US dollar-denominated Victoria Falls Stock Exchange (VFEX) in line with the firm’s recapitalisation plans.
The microfinance bank has been negotiating for a US$5 million recapitalisation package to enable it to meet the required minimum capital threshold set by the Reserve Bank of Zimbabwe (RBZ).
Herald
