Old Mutual: Africa's Largest Insurer Lists on Victoria Falls Stock Exchange

• Old Mutual debuted on the Victoria Falls Stock Exchange with a listing price of 76 US cents per share.
• The shares rose 2.9% to 78.17 cents by the close of trading, valuing Africa's largest insurer at $51 million.
• The VFEX listing is expected to attract interest from local and international investors due to clearer valuation and lower foreign currency risk.
• Old Mutual had previously listed on the Zimbabwe Stock Exchange but was suspended in 2020 due to concerns over exchange rate manipulation.

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.

Old Mutual, Africa's largest insurer by assets, made its debut on the Victoria Falls Stock Exchange (VFEX) with a listing price of 76 US cents per share. The shares quickly gained traction, rising 2.9% to 78.17 cents by the close of trading. This move marks a significant shift for Old Mutual, which had previously listed on the Zimbabwe Stock Exchange but was suspended in 2020 due to concerns over exchange rate manipulation. The VFEX listing is expected to attract interest from both local and international investors, who will benefit from clearer valuation and lower foreign currency risk.

The VFEX has been gaining momentum since its inception in 2020, surpassing the Zimbabwe Stock Exchange (ZSE) in market value in March this year. The bourse's success can be attributed to its ability to attract high-profile listings, including telecommunications infrastructure firm Econet, which was valued at $1 billion upon its move to the platform. However, not all companies have been successful on the VFEX, with hospitality group African Sun being delisted earlier this year due to poor performance. Retailer Edgars is also planning to delist next month, citing the expansion of Zimbabwe's informal economy and the costs associated with maintaining a listing.

Old Mutual's listing on the VFEX marks an important milestone for cross-border investments in Africa. The move is expected to generate interest from international investors, who will benefit from clearer valuation and lower foreign currency risk. Lawyers advising clients on cross-border investments should take note of this development, as it highlights the potential benefits of listings like Old Mutual's on the VFEX. Furthermore, the success of the VFEX in attracting high-profile listings underscores its growing importance as a regional stock exchange.

Lawyers advising clients on cross-border investments should note the potential benefits of clearer valuation and lower foreign currency risk associated with listings like Old Mutual's on the Victoria Falls Stock Exchange.

Source: Original reporting via South African giant makes big move in Zimbabwe