Share consolidation makes Econet most valued public company in Zimbabwe

HARARE, August 7 (The Source/EA News) – Econet Wireless is now the most valued counter on the Zimbabwe Stock Exchange at $3,2 billion after Class A shares held by the majority shareholder Econet Wireless Global (EWG) were integrated to the free-float on the local bourse.

Before the consolidation, Econet’s ordinary share capital amounted to 993,746,764 which were the shares held by minorities and traded on the ZSE. The addition of 1,596,068 Class A shares, or 61,6 percent of the total issued share capital, rocketed the market value of Econet from $1.24 billion to $3.24 billion at its trading price of 125 cents as at 1 August, the effective date of Class A shares recognition.

With 25,2 percent of total ZSE valuation, Econet is now the most valued public company in Zimbabwe, surpassing Delta which has held that position for as many years.

The beverages manufacturer is valued at $1.26 billion or 9,7 percent of the ZSE’s total valuation at the same date. Collectively, the ZSE has a market capitalisation of $13 billion.

Econet’s Class A shares — which are controlled by EWG — largely reflect founder Strive Masiyiwa’s interest in the evolving local company. The status represents special rights given to the shares in terms of voting and other such rights.

Econet, Zimbabwe’s largest mobile operator, reported an after tax profit $132.3 million in the full year to February 28 compared to $36.19 million previously. It declared a total dividend for the year amounting to $60 million, equivalent to 2.3562 US cents per share. 

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