ECONET Wireless Zimbabwe added US$55,56 million to its market capitalisation in its final week on the Zimbabwe Stock Exchange (ZSE), as investors rushed to secure a stake in the telecoms giant ahead of its delisting from the bourse tomorrow.
The buying spree pushed the company’s market capitalisation to US$1,23 billion as of last Friday, up from US$1,18 billion a week earlier.
Ahead of the delisting, Econet made an exit offer of US$0,50 per share, comprising US$0,17 in cash and one share in Econet Infrastructure Company Limited (InfraCo) valued at US$0,33, which closed on March 9.
InfraCo — Econet’s infrastructure unit — was listed on the Victoria Falls Stock Exchange (VFEX) on Friday. The company holds the telecoms group’s real estate and infrastructure assets, including land, tower sites, operational buildings and energy systems across Zimbabwe.
Following the exit offer, Econet holds a 95,215% stake in InfraCo, which will fall to 70% after a dividend in specie of 754 468 575 InfraCo shares is distributed to Econet shareholders when trading on the VFEX begins.
Securities analyst Kuda Taimo told NewsDay Business that the rush for Econet shares is largely driven by the company’s dividend prospects.
“Econet declared a final dividend of 0,61 US cents per share for the year ending February 28, 2026. This brings the total annual dividend to 2,44 US cents per share, translating to a dividend yield of about 8% for shareholders who opted to remain invested in Econet post-delisting,” he said.
He added that shareholders who did not take up the exit offer would also benefit from a dividend in specie.
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“Remaining shareholders will receive 0,26482 InfraCo shares for every one Econet share held. Only 4,785% of shareholders accepted the exit offer, while VFEX listing rules require at least 30% of shares to be held by public or minority investors,” Taimo said.
He noted that investors are effectively guaranteed a floor price of 50 US cents per share on the over-the-counter platform once the company delists, with Econet promising share buybacks after a year.
“Econet has also pledged to continue paying dividends post-delisting as long as the company remains profitable. An 8% dividend yield is high compared to other blue chips,” Taimo said.
He said the remaining shareholders will also gain exposure to the VFEX through InfraCo shares, alongside the future exit option and dividend income.
“This means Econet shareholders are given direct VFEX listing exposure (InfraCo), plus the US 50 cents exit offer after a year, and dividend yield income play. Tell me that’s not a win! So, this is clearly a win for Econet shareholders,” Taimo said.
Since announcing plans to delist from the ZSE on December 15, 2025, Econet’s market capitalisation has surged sharply as investors rushed to accumulate the stock.
At the time of the announcement, the company was valued at US$739,28 million, meaning its market value has increased by nearly US$500 million.
The delisting comes more than 27 years after Econet listed on the ZSE on September 17, 1998, during which time it became one of the exchange’s anchor stocks alongside Delta Corporation Limited.
In its VFEX pre-listing statement, InfraCo said its authorised share capital has been increased to 5 billion, up from 3 billion previously, while the issued share capital remains unchanged at 2 992 163 203 shares.
“This change aligns the company’s capital structure with its long-term strategic plans,” InfraCo said.
The company added that its strategic focus remains on real estate and infrastructure asset ownership, passive telecommunications infrastructure, and power and energy solutions — including renewable energy infrastructure.
InfraCo directors also confirmed that the company has sufficient working capital to support operations for at least the next 12 months.
