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ECONET Wireless is now the most valued counter on the Zimbabwe Stock Exchange at $3,2 billion after Class A shares held by the majority shareholder Econet Wireless Global were integrated to the free-float.

Free float refers to a portion of shares of a corporation that are in the hands of public investors on the bourse.

According to The Source, before the consolidation, Econet’s ordinary share capital amounted to 993746 764 which were the shares held by minorities and traded on the Zimbabwe Stock Exchange (ZSE).

The addition of 1 596 068 Class A shares, or 61,6 percent of the total issued share capital, rocketed the market value of Econet from $1,24 billion to $3,24 billion at its trading price of 125 cents as at August 1, the effective date of Class A shares recognition.

With 25,2 percent of total ZSE valuation, Econet is now the most valued public company in Zimbabwe, surpassing Delta which has held that position for as many years.

The beverages manufacturer is valued at $1,26 billion or 9,7 percent of the ZSE’s total valuation at the same date. Collectively, the ZSE has a market capitalisation of $11,9 billion.

Econet’s Class A shares — which are controlled by EWG — largely reflect founder Mr 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.

Econet, Zimbabwe’s largest mobile operator, reported an after tax profit $132,3 million in the full year to February 28 compared to $36,19 million previously.

It declared a total dividend for the year amounting to $60 million, equivalent to 2,3562 cents per share.

In the quarter ended May 31, 2018 the telecommunications company declared a dividend of 0,772c per share amounting to $20 million. — The Source/Business Chronicle