ZSE reviews listing application fees

 ZSE reviews listing application fees
Published: 14 June 2019
The Zimbabwe Stock Exchange (ZSE) has reviewed listing application fees in line with changes in the local functional currency. The changes are also based on an analysis of the regional listing fees and the minimum costs to be incurred by the ZSE in the processing of listing applications and regulation of listed entities.

In line with this, the ZSE has proposed new listing fees, annual listing fees as well as document review fees.

According to the ZSE, annual listing for a company whose market capitalisation is $20 million and below will be $15 000.  Stocks such as MedTech, Zeco, National Tyre Services, Truworths, General Beltings, Fidelity and Cafca fall under this category.

Companies under tier two with a capitalisation of between $20 million and $100 million will pay between $15 000 and $40 600.

Those within the range of $100 million and $300 million will part with between $40 600 and $50 600 as annual listing fees. Fees for the market's top value counters ranging between $300 million and $1 billion are pegged at a minimum of $50 600 and $61 100.

The market's top four counters, Delta, Econet, Cassava and Innscor that are valued at over a billion dollars each, will pay a minimum of $61 100 and $67 210.

In their explanation, the ZSE said: "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; 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."

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 March 31 of each year.

The ZSE also reviewed document review fees to reflect the policy announcements made in February when the Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya announced the RTGS$ as functional currency.

On articles of association, companies will now pay $1 500 from US$500 last year per new listed company and $600 from US$200 per subsidiary of a listed company.

For rights offers, renounceable offers and claw-back offers inclusive of circular on pre-listing statements, letter of allocation and underwriting agreements now costs $7 500 from US$2 500 that was required last year.

Review of documents on de-listing is now pegged at $6 000 from US$2 000 that was charged in 2018.
- eBusiness Weekly
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