Breaking News

Econet share split, shareholders to decide

by Business reporter
27 February 2013 | 3085 Views
THE Zimbabwe Stock Exchange-listed telecommunications firm Econet Wireless says small investors will now be able to buy its shares when shareholders vote for a share split tomorrow. In a statement, the company said this was a major development since its listing in 1998.

"This will be possible after shareholders approve a 'ten to one' share split at an Extraordinary General Meeting which has all the signs that it will be a success".

While the share split will not have any impact on Econet's market capitalisation, it will allow investors to trade each split share at a tenth of the current market price of the company's shares.

This means there will be more active trading in the firm's shares as more people will now be able to afford to invest in the shares.

At listing in 1998, small investors were the majority of shareholders in Econet.

However, as the price has risen due to the company's growth, small shareholders have gradually been squeezed out by large foreign investors and fund managers.

The company said its founder, Mr Strive Masiyiwa, has not been happy with the development and has personally pushed for the share split.

"Econet believes that the share split will not only allow more small investors to buy or increase the number of Econet shares they own, but will also make shareholders in a fast growing company and in which they will over time benefit from the growth in shares.

"The public shareholders of the company are numerous, with many ordinary shareholders seeking to buy shares in the company.

"This share split will open up investment in Econet to more ordinary investors who had been unable to take part due to the high prices," said the firm.

The share split comes after Econet board realised following a study that the company's shares were now so expensive that only foreign investors were buying the company shares.

As a result, the level of foreign ownership in the company has shot up from 10 percent at listing in 1998 to more than 30 percent at present.

On Monday, Econet share price was $6,76, meaning that an ordinary member of the public would have to pay $676 to buy just the minimum lot amount of 100 ordinary shares.

However, after the split, 100 shares will cost about $69.




The telecommunications company said the share split was an important development for small investors who have always wanted to participate in the growth of the company.

"Millions of small investors had bought the company's shares when it listed but have been unable to buy more shares particularly after dollarisation as the shares became expensive".

Econet Share split Shareholders

Source: TH

Does Prophet Magaya's anointing oil work?

Yes
17.52%
No
70.29%
Spiritual matters
12.2%
451

Comments

News Updates

Email:

Latest News

BCC channel $200 000 to its soccer team - BULAWAYO City Council-sponso...

by Tholakele Zhou | 05 March 2015 | 154 Views

'ZBC licence inspectors unleashed near State House'

by Byo Resident | 05 March 2015 | 668 Views

Bulawayo firms get debt extension relief

by Tholakele Zhou | 05 March 2015 | 357 Views

BCC seek funding from Mauritius - BULAWAYO City Council has turned to ...

by Tholakele Zhou | 05 March 2015 | 390 Views

Adding 'ICE' to your cell phone can save a life

by Staff Reporter | 05 March 2015 | 583 Views

Gamatox nonexistent party - The United Movement for Democratic Change ...

by Mandlenkosi Chinula | 05 March 2015 | 887 Views

UMDC Provincial Launches to follow up - The United Movement for Democr...

by Mandlenkosi Chinula | 05 March 2015 | 272 Views

Why the United MDC? - The coming together of Green and Orange under th...

by Nqgabutho Mabhena | 05 March 2015 | 396 Views

Mugabe to evict 163 white farmers - MORE than 160 white commercial far...

by Staff reporter | 05 March 2015 | 532 Views

Rugare Gumbo ready for Mugabe fight - FORMER Zanu-PF national spokespe...

by Staff Reporter | 05 March 2015 | 1025 Views

Bulawayo roads over patched

by Mandlenkosi Chinula | 05 March 2015 | 547 Views

BCC applauded for provision of Clean Water - Bulawayo City Council has...

by Mandlenkosi Chinula | 05 March 2015 | 352 Views

New Ministers ready to work - It is indeed disturbing and worrisome t...

by Peacemaker Zano | 05 March 2015 | 462 Views

Japan to fund construction of classroom blocks, teachers' houses at Ma...

by Staff Reporter | 05 March 2015 | 444 Views

MDC-T accused of stealing - The Movement for Democratic Change led by...

by Staff Reporter | 05 March 2015 | 632 Views

New Intercape - Pathfinder coaches release destination routes - The ne...

by Staff reporter | 05 March 2015 | 1185 Views

More maintenance vows for Roki - URBAN grooves star musician Rockford ...

by Court Reporter | 05 March 2015 | 685 Views

Mutasa admits to working with Mujuru - OUSTED Member of Parliament for...

by Staff reporter | 05 March 2015 | 1975 Views

ZBC taken to task over 'biased, unfair coverage' - The Zimbabwe Broadc...

by Staff reporter | 05 March 2015 | 667 Views

Speeding bus crushes woman, injures several others - One person was cr...

by Staff reporter | 05 March 2015 | 1050 Views

400 Zimbabweans die in SA every month - AN estimated 400 bodies of de...

by Staff reporter | 05 March 2015 | 1489 Views

SA threatens to cut Zimbabwe power supplies - Electricity shortages in...

by Staff reporter | 05 March 2015 | 1054 Views

Maleme farm invasion sparks outrage - The looming takeover of Maleme F...

by Staff reporter | 05 March 2015 | 921 Views

EU warns Mugabe - The European Union has warned that President Robert ...

by Staff reporter | 05 March 2015 | 1181 Views

Entertainment

TV Programme Concepts Requirements - Dear independent producers,Thank ...

by Staff reporter | 03 March 2015 | 1353 Views

Fireworks expected on the Easter Weekend in UK

by Staff Reporter | 03 March 2015 | 1204 Views

DStv annual price increase effective 1 April 2015 - MultiChoice Afric...

by Mafu Sithabile | 02 March 2015 | 3543 Views

Popular Zim dancehall chanter arrested for fraud

by Liberty Dube | 27 February 2015 | 4545 Views

Group pens song for Mugabe - A 7-member group from Acturus has release...

by Staff reporter | 21 February 2015 | 2078 Views

Mathias Mhere saga takes new twist - Gift Mahlupeka, who allegedly che...

by Staff reporter | 20 February 2015 | 11072 Views

Mlambos Express Band flies Matabeleland Flag - Mlambos Express Band po...

by Entertainment Reporter | 20 February 2015 | 3575 Views
iBlog

Auslogics Boostspeed 7 - More Powerful And User-friendly Than Ever

Auslogics boostspeed 7 - more powerful and user-friendly than ever!wondering how to fix slow computer performance? experts recommend auslogics boostspeed 7 - the most comprehensive system optimization software! auslogics boostspeed 7 is here!the bran... Read More
ITnews 26 August 2014 ago

The Zero-day Vulnerability Cve-2014-4114 Impacting All Versions Of Microsoft Windows

new microsoft windows zero-day vulnerability - cve-2014-4114on tuesday, october 14, 2014, isight partners - in close collaboration with microsoft - announced the discovery of a zero-day vulnerability impacting all supported versions of microsoft win... Read More
SecNews 16 October 2014 ago