The Victoria Falls Stock Exchange (VFEX) faces a critical test on Friday as observers eagerly await its decision regarding the listing of WestPro Holdings a company owned by fraudster and land baron Kenneth Raydon Sharpe.
The controversy surrounding the listing stems from WestPro’s failure to publish a pre-listing supplementary report to address grievances raised by certain stakeholders, as required by law.
WestPro, a property firm, was compelled to disclose additional information ahead of its listing after the Securities Commission of Zimbabwe (SecZim) directed the company to publish a supplementary report concerning undisclosed pending court cases that were absent from the original prospectus.
This action was taken following complaints filed by parties who are currently suing companies associated with WestPro and its directors, alleging that the firm did not adhere to listing regulations by failing to make complete disclosures.
The potential listing of WestPro on the VFEX, a US dollar-denominated bourse, has attracted considerable attention due to indications that the company may have misled the public by inadequately disclosing information in its listing prospectus.
The complainants have asserted that WestPro did not fully disclose ongoing litigation against the company, which could potentially impact the value of its shares, thereby violating sections 97 and 114 of the Securities and Exchange Act [Chapter 24:25].
In response, SecZim, the regulatory authority for the country’s capital markets, has written to both the VFEX and WestPro, requesting them to submit their presentations.
“It is a litmus test for the VFEX; whether they are going to follow or breach rules unless they have the powers to grant exemptions,” commented an anonymous analyst, who declined to be identified for professional reasons.
“There might be some technicalities that could potentially allow the listing to proceed, but if any exceptions are made, they should be thoroughly explained.”
The outcome of the VFEX’s decision regarding WestPro Holdings will be closely monitored by market participants, regulators, and investors alike.
The integrity and adherence to regulations by the VFEX in this case will undoubtedly influence perceptions of the exchange’s commitment to transparency and investor protection.
Source | ZiMetro News | Additional Reporting By Kells Dziva