TEA producer, Tanganda Tea Company Limited (Tanganda) has abandoned its plan to make a secondary listing on the Victoria Falls Stock Exchange (VFEX), despite initially wanting to do so to raise more capital.
In October 2024, Tanganda’s board of directors announced they would meet to discuss delisting from the Zimbabwe Stock Exchange (ZSE) for a VFEX listing, but ditched the plan two months later.
Instead, the Tanganda board agreed to issue new shares and list them on the VFEX as a secondary listing to shore up capital as market activity has been volatile on the ZSE.
Currently, as of Tuesday, the firm’s market capitalisation on the ZSE was valued at US$8,77 million.
“Reference is made to the amended cautionary announcement dated December 10, 2024 and the subsequent further cautionary announcements regarding interrelated transactions on creation of a new class of shares referred to as Class A ordinary shares, their subsequent secondary listing on the Victoria Falls Exchange and a capital raise by way of a Renounceable Rights Offer of the listed Class A ordinary shares to raise US$8 million,” Tanganda said in a statement.
“The directors of Tanganda Tea Company Limited (the company) wish to inform shareholders and the investing public of the following changes: 1. There will no longer be a creation and secondary listing of the proposed Class A ordinary shares on the VFEX.
“2. The capital raise by way of a Renounceable Rights Offer to the existing ordinary shareholders in proportion to their shareholding in the company to raise US$8 million will be undertaken on the Zimbabwe Stock Exchange.”
The company is expected to publish a circular to shareholders incorporating a notice of an extraordinary general meeting of members for the purpose of considering and approving the capital raise.
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“The transaction, if successful, may have a material effect on the company’s share price. Accordingly, shareholders are advised to continue exercising caution when dealing in the company’s shares until a full announcement is made,” Tanganda said.
During its half-year financial performance ended March 31, 2025, Tanganda improved its liquidity.
It ended the period with enough capital to cater for any short-term obligations, as it had US$1,62 to every dollar of debt that should become due.
In the half year report, the firm revealed that demand for its products remained relatively strong despite the impact of intricate macroeconomic factors on the local, regional and international markets.
It also revealed that the company would also continue to pursue sustainable market diversification to expand the regional and international markets.
