Econet now the most valued public company in Zimbabwe
Econet Wireless is now the most valued counter on the ZSE after class A shares held by the majority shareholder EWG were integrated to the free-float ordinary shares previously recognized as the entire ordinary share capital on the ZSE.
Before the consolidation Econet’s ordinary share capital as recognized by the ZSE amounted to 993,746,764. This referred to shares held by other shareholders outside of the majority shareholder and traded on the ZSE.
The number of Class A shares amounted to 1,596,068 which is an equivalent of 61.6% of the total 2,590,576,832 shares now recognized post the consolidation.
This increase in the number of shares from 993,746,764 to 2590,576,832 subsequently impacted on the market value of Econet Zimbabwe whose market capitalization grew by 107% from $1.24 billion to $3.24 billion given a trading price of 125c as at 1 August, its effective date of Class A shares recognition.
Econet has thus moved to pole position in terms of the market value and is now the most valued public company in Zimbabwe surpassing Delta which has held that position for as many years. Beverages manufacturer Delta is valued at $1.26 billion.
The converted 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.
Collectively the ZSE has a market capitalization of $13 billion. Meanwhile