Econet claims its shares are 'grossly undervalued'

Econet Wireless, Zimbabwe's largest technology company, has warned investors that its shares are "grossly undervalued" on the Zimbabwe Stock Exchange (ZSE), with a market capitalisation of roughly US$628 million, a figure the company says does not reflect the true value of its business and infrastructure.

In a cautionary announcement issued on Wednesday, 3 December, Econet said the low valuation has hindered its ability to raise competitively priced funding for critical network upgrades and new technologies.

"[The] Company's share price on the Zimbabwe Stock Exchange is grossly undervalued in relation to the intrinsic value of the Company's operations and infrastructure assets," Econet's company secretary, Tatenda Alice Ngowe, said.

The company added that this misalignment between market capitalisation and intrinsic value has eroded shareholder value, as the ZSE price does not reflect the growth of the business.

Econet said it has begun evaluating potential corporate actions to unlock shareholder value, improve access to capital, and strengthen long-term competitiveness. The outcome of this evaluation could have a material effect on the company's share price.

"Shareholders and the investing public are advised to exercise caution when dealing in the Company's securities until a further announcement is made," Ngowe added, pledging updates as more information becomes available.

Several major Zimbabwean companies have already moved to the US dollar-based Victoria Falls Stock Exchange (VFEX), citing fairer valuations and easier access to capital.