The hospitality firm, Rainbow Tourism Group (RTG) has pushed its market capitalisation beyond the US$100 million mark on the Zimbabwe Stock Exchange (ZSE), as it moves to become the country’s biggest tourism-focused company.
According to financial services firm IH Securities, RTG’s market capitalisation stood at US$109,94 million as of Monday, representing a year-to-date gain of 88,55%.
The rally marked the third-largest year-to-date gain on the market, trailing only ZimRe Holdings Limited’s 300% surge and Econet Wireless Zimbabwe’s 97,49% rise.
As a result, RTG is now trading at an estimated 47% premium to book value, with its market capitalisation exceeding total assets of nearly US$74,84 million as of June.
The valuation reflects heightened investor expectations of stronger earnings and sustained growth.
The implied price-to-book ratio of about 1,47x confirms that RTG’s shares are trading at a significant premium to the group’s asset base, underscoring growing investor confidence in its performance outlook.
This follows a period of strategic expansion, including the acquisition of a Cape Town property in South Africa earlier this year and the Montclair Hotel and Casino in Nyanga in November 2024, with further investments in the pipeline.
“Reaching the US$100 million mark is a strong vote of confidence in the group’s strategy and performance,” RTG chief executive Tendai Madziwanyika told the Zimbabwe Independent in an interview.
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“This milestone is driven by consistent earnings growth, disciplined capital allocation, and a clearly communicated expansion roadmap that the market and investors believe in.
“The investment in product refurbishment, acquisitions and a strengthened balance sheet has collectively positioned us as a robust, forward-looking hospitality group. The market is simply recognising the value we are creating,” he added.
Madziwanyika said the valuation momentum was prompting the group to deepen engagement with investors.
“We are reinforcing transparency, improving the frequency of investor communication and ensuring the market fully appreciates our pan-African growth story,” he said.
“Our acquisitions, refurbishments, and digital ecosystem provide a pipeline of value-generating projects that institutional and retail investors can confidently support.
“Maintaining operational excellence and strong cash generation remains key to sustaining and growing this confidence.”
Madziwanyika said RTG was increasingly well-positioned to attract institutional investors, including pension funds.
“The fact that RTG has been consistently paying dividends makes us attractive to any investor. RTG’s capital allocation strategy is designed to balance rewarding shareholders with sustaining long-term growth,” he said.
“The US$1,1 million interim dividend for the half-year 2025, following the US$2,5 million pay-out in 2024, reflects our confidence in strong, recurring cash flows while ensuring the group retains sufficient liquidity for operations, debt servicing and expansion.
“We reinvest selectively in projects that meet strict return thresholds and strengthen our portfolio, funding these through a combination of internal cash generation and well-structured financing to maintain a resilient balance sheet as we grow.”
Madziwanyika said the group was anchored on the principle that companies exist to create and grow shareholder wealth, a philosophy central to RTG’s long-term strategy.
According to the Treasury, Zimbabwe expects to attract 947 103 domestic and 1,87 million international tourist arrivals next year, up from this year’s 945 213 domestic and 1,79 million international visitors.
Madziwanyika said RTG was, therefore, well-positioned to benefit from the anticipated growth in tourism activity.
