Breaking News

Econet share split, shareholders to decide

by Business reporter
27 February 2013 | 3206 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

Is Itai Dzamara eyeing the US Green Card?

Yes
20.37%
No
73.83%
Not sure
5.79%
535

Comments

News Updates

Email:

Latest News

Ncube blame failure to 'operationalize' Electoral Act for rigged 2013 ...

by Wilbert Mukori | 22 May 2015 | 1993 Views

NetOne to launch 5G network - MOBILE network provider, NetOne will lau...

by Staff reporter | 22 May 2015 | 2552 Views

Gugurahundi devoured my bi-ethnic background - Pt 1 - My name is Mandl...

by Nomazulu Thata: taken from eBook 'Sweetmother' | 22 May 2015 | 3343 Views

Soldier bashes motorist for refusing him a lift - A soldier based in M...

by Staff reporter | 22 May 2015 | 3808 Views

Kasukuwere is gay and power hungry - Video - Temba Mliswa yesterday re...

by Staff reporter | 22 May 2015 | 3726 Views

Elections: When Non - Participation is Important - Welshman Ncube on ...

by Welshman Ncube | 22 May 2015 | 1612 Views

'F*****', Jonathan Moyo loses it on Twitter

by Staff Reporter | 22 May 2015 | 5648 Views

Man with huge manhood infuriates sex workers by using it on goats - A ...

by Staff Reporter | 22 May 2015 | 8493 Views

Prophet fatally stabs a soldier - A 28-YEAR-OLD man who claimed to be ...

by Staff reporter | 22 May 2015 | 2992 Views

Zanu-PF expels more heavyweights - The Zanu-PF politburo has expelled ...

by Staff reporter | 22 May 2015 | 4348 Views

Pregnant wife torments hubby, issues death threats

by Staff Reporter | 22 May 2015 | 2675 Views

Tsvangirai is fighting from the wrong corner

by Peacemaker Zano | 22 May 2015 | 2095 Views

Man kills son, cut of ear and collect blood in lunch box

by Staff Reporter | 22 May 2015 | 2512 Views

Sikhala strongly remembers Dzamara

by Stephen Jakes | 22 May 2015 | 1880 Views

There is a political hand behind Cuthbert Dube's firing

by Stephen Jakes | 22 May 2015 | 2007 Views

Migrant workers union laments targeting of cross border buses by robbe...

by Stephen Jakes | 22 May 2015 | 1877 Views

Let those who want to vote go and vote - I totally agree with the nee...

by Bekezela Maduma Fuzwayo (Facebook extract) | 22 May 2015 | 1244 Views

Gwanda residents demand construction of roads and bridge - Gwanda resi...

by Stephen Jakes | 22 May 2015 | 1056 Views

Harare Residents Trust saddened by death of members - Harare Residents...

by Stephen Jakes | 22 May 2015 | 1239 Views

Duo defraud employer of over $6600

by Stephen Jakes | 22 May 2015 | 1695 Views

Witchcraft scare at High School, 80 pupils sent back home - About 80 p...

by Staff Reporter | 22 May 2015 | 3731 Views

Man to hang for ritual murder - A Karoi man who killed his nine-year-o...

by Daniel Nemukuyu | 22 May 2015 | 1936 Views

Zimbabwe army to veto Mnangagwa Presidency - Hardline military and int...

by Itai Mushekwe | 22 May 2015 | 5281 Views

'Weak' Mujuru failed us -Temba Mliswa

by Staff Reporter | 22 May 2015 | 3253 Views

Disabled child ruins marriage - A TEENAGER who was impregnated aged 14...

by Staff reporter | 22 May 2015 | 2149 Views

Entertainment

All set for Jah Prayzah album launch

by Brendon Nyoni | 22 May 2015 | 1547 Views

Nicki Minaj teams up with Beyoncé In 'Feeling Myself' Video

by Staff Reporter | 19 May 2015 | 4339 Views

Lady Bee - Manyemwe / Vavengi - (UK) - https://www.youtube.com/watch?...

by Staff Reporter | 18 May 2015 | 2886 Views

Gwala, Kapfupi drama comedy ready - THE hilarious Mahlalela drama come...

by Lance Chigodo | 17 May 2015 | 3508 Views

Tsvangirai worship album out - GABORONE-BASED MDC-T activists and prot...

by Staff reporter | 16 May 2015 | 5270 Views

Ringo, Winnie Khumalo Harare gig in doubt

by Staff Reporter | 14 May 2015 | 4158 Views

Oliver Mtukudzi takes fans for granted?

by Staff Reporter | 12 May 2015 | 6323 Views

Hit-makers release forth album

by Vusmann | 12 May 2015 | 3516 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