ECONET Wireless Zimbabwe’s planned delisting from the Zimbabwe Stock Exchange (ZSE) is set to wipe more than US$700 million off the bourse, with analysts warning the move will remove one of its most liquid and widely held counters, further dampening investor confidence.
Econet yesterday announced plans to voluntarily delist from the ZSE, saying it was initiating corporate actions to correct what it described as a “grossly undervalued” share price, unlock shareholder value, improve access to capital and strengthen long-term competitiveness.
The transaction needs approval of shareholders at a yet-to-be-set date.
At the time of its initial announcement on December 3, Econet had a market capitalisation of US$628,31 million despite total assets valued at US$957,32 million as of August, highlighting the extent of the perceived undervaluation.
The announcement triggered renewed investor interest, pushing Econet’s market capitalisation to US$1,01 billion by December 9, briefly making it the ZSE’s largest listed company. However, the valuation later stabilised at US$739,28 million on Monday.
Following Econet’s exit, the ZSE’s total market capitalisation is expected to fall sharply in real terms to about US$2,35 billion, from over US$3 billion recorded on Monday.
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Financial securities analyst Kuda Taimo told NewsDay Business that Econet’s exit would remove a “cornerstone stock that contributes meaningfully to daily turnover, index weighting and institutional participation”.
“Reduced liquidity tends to exacerbate volatility, widen bid-offer spreads, and discourage both local and foreign investors — creating a self-reinforcing cycle of declining market relevance,” he said.
He noted that Econet has historically been one of the most liquid and widely held stocks on the exchange, adding that its potential exit comes at a time when the ZSE is already struggling with shrinking market breadth and persistent liquidity constraints.
He said while this strategy may be rational for shareholders seeking long-term value realisation, its consequences for the ZSE were far less benign.
The analyst also pointed to a growing trend of delistings in 2025, raising concerns about the long-term credibility of the exchange.
“The OMTT ETF delisted in January, Khayah Cement exited the market in May, Truworths followed in July. NTS (National Tyre Services Limited) is scheduled to delist on 31 December 2025,” Taimo said.
“Should Econet shareholders approve the proposed delisting, this would represent the fifth delisting from January 2025, amplifying concerns around the long-term attractiveness and credibility of the exchange.”
Econet told shareholders to exercise caution in trading its stock.
It said the company has, in several years, traded at a “significant discount to its peers across Africa, which trade at 6 – 8x EV/EBITDA”.
To address this, the telecoms giant has placed its towers, real estate and power assets under a newly formed entity, Econet Infrastructure Company Limited (Econet InfraCo), which will be listed on the Victoria Falls Stock Exchange.
“This approach enables clearer visibility of asset values, focused capital allocation, and a distinct operational strategy for infrastructure deployment and management,” Econet said.
Econet will retain a 70% stake in Econet InfraCo, while up to 30% of the shares will be allocated toward settling the exit offer for shareholders who choose not to remain invested following the delisting.