Old Mutual returns to Zimbabwe market after six years

Bloomberg

Shares in Old Mutual began trading on Zimbabwe’s dollar-denominated stock exchange, six years after they were suspended on the country’s main bourse to curb a currency rout.

The shares debuted at 76 US cents apiece on the Victoria Falls Stock Exchange on Wednesday and advanced 2.9% to 78.17 cents by the close, valuing Africa’s largest insurer by assets at $51 million. In neighbouring South Africa, where the company is based, the stock closed at R12.56.

Old Mutual migrated its listing from the Zimbabwe Stock Exchange. In 2020, the Zimbabwean authorities suspended trading in its stock, along with other cross-border companies, including South Africa’s PPC and Seed, because their dual listings enabled investors to exploit differences between the two nations’ exchange rates as the Zimbabwean dollar collapsed.

“We expect the listing to generate interest from both local and international investors over time,” Old Mutual, said in an emailed response to questions. “The counter will trade in USD, which supports clearer valuation and also results in lower foreign currency risk, which are critical factors for international investors.”

The VFEX, formed the same year Old Mutual was suspended, surpassed the 132-year-old Harare-based ZSE in market value in March, after tycoon Strive Masiyiwa moved telecommunications infrastructure firm Econet InfraCo to the platform at a $1 billion valuation.

The bourse has so far had one delisting this year – hospitality group African Sun – and may soon have another.

Retailer Edgars Stores, which moved to the VFEX in 2024 after 50 years on the ZSE, plans to delist next month, citing the expansion of Zimbabwe’s informal economy and the costs and obligations of maintaining a listing.