BY TATIRA ZWINOIRA
THE Zimbabwe Stock Exchange (ZSE) has increased its initial and annual listing fees for 2021 to between $450 000 and $4,2 million as the main bourse adjusts its charges to inflation.
This year, annual listing fees on the main bourse ranged from $85 000 to $500 000, while initial listing fees were 0,05% of the value of securities subject to a minimum of $85 000 and maximum of $500 000.
Apart from the new annual listing fees for 2021, initial listing fees for next year will be 0,05% of the value of securities subject to a minimum of $450 000 and a maximum of $4,5 million.
“The monetary value of securities for which application for listing is made will be determined as follows: The number of securities for which application for listing is made multiplied by the price per security; in respect of capitalisation issue, where no market related price is attributable to the securities to be listed, they will be deemed to have a value calculated by multiplying the number of securities listed by the closing price on the declaration date,” ZSE said in the announcement yesterday.
“And, in respect of introductions, where no price is attributable to the securities, they will be deemed to have a value calculated by multiplying the number of securities listed by the closing price on the first day of trading.
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“In respect of each class of security listed, an annual listing fee shall be payable (except during the calendar year in which the first listing of securities is granted) based on the market capitalisation value as at November 30 of the preceding year.”
ZSE also announced new debt securities initial listing fees that are between $40 000 and $600 000 for instruments with a value between $20 million and $10 billion at a time companies are implementing such strategies to raise capital.
“The ZSE annual listing fees (excluding VAT) for debt securities will be charged at 0,0125% of the outstanding amount subject to the following: Minimum — $40 000, maximum — $600 000. If the legal entity issuing a bond is already listed on the ZSE then the issuer will pay 50% of the applicable annual debt listing fees.”
The increased fees come at a time some companies are preparing to delist from the main bourse as the market has remained subdued and limited in raising capital.
For example, Powerspeed Electrical Limited announced last month that it planned to delist from the ZSE as a continued presence on the bourse would drain vital resources. l Follow Tatira on Twitter @tati_tatira