ECONET Wireless Zimbabwe now has the largest market capitalisation on the Zimbabwe Stock Exchange (ZSE) after the local bourse’s decision to include unquoted shares in the company’s valuation on the equities market.
Econet, which now has a market capitalisation of $3,2 billion, was the second largest company by market capitalisation, with a value of $1,97 billion, second to Delta at $2,7 billion, before the latest development.
The changes were made by ZSE on August 1.
“The ZSE has amended the market capitalisation method to include all issued shares of listed firms whether quoted or unquoted,” acting chief executive Martin Matanda said.
Following the changes, Econet’s Class A shares, which were unquoted, have been integrated into the company’s market capitalisation. The shares, which represent the stake held by EWG, had previously not been recognised as part of the group’s free-float ordinary share capital.
The Class A shares, which reflect founder Strive Masiyiwa’s interest in the company, give the holder special rights in terms of voting.
The performance of the local stock market, which has been exceptional over the past two years and was reported as the best performing bourse globally at some point last year, has been driven largely by top companies such as Econet and Delta.
The Econet stock has gained 209 percent over the past 52 weeks, with 34,16 percent realised this year alone. The lowest price recorded over the past year was 42 cents per share, with a high of 188 cents per share over the same period. Econet closed trading on Monday this week at 123 cents per share.
This year, Econet celebrated 20 years in business with a solid set or financial results for the year ended February 2018.
The company reported revenues of $831 million, with a profit after tax of $132 million, representing significant gains from revenues of $621 million and a profit of $36 million, last year. The company’s operating margin firmed to close the year at 41 percent, an increase from 36 percent in the previous year.
In 2009, Econet became the first operator in the country to launch data services with 3G capability.
The group’s subsidiaries include Econet Global, Econet Wireless Africa, Econet Wireless International, Econet Enterprises, Liquid Telecom Group and Econet Media. financialgazette