Econet InfraCo poised to become Zimbabwe’s largest IPO

STAFF WRITER
Econet Wireless Zimbabwe has placed a US$1 billion valuation on Econet InfraCo, its infrastructure development and management business, positioning the business for what could become the largest initial public offering (IPO) in Zimbabwe’s capital markets history.
Econet InfraCo is set to be listed on the Victoria Falls Stock Exchange (VFEX), a move that would mark a watershed moment for the country’s capital markets, given the sheer scale of the proposed valuation.
Econet published details of its infrastructure, power, and real estate company, for the first time, showing strong revenue and profitability.
In the circular Econet has set out the reasoning for the valuation of Econet InfraCo.
The decision by Econet to spin out its infrastructure division is in line with most mobile operators around the world and across in Africa.
Econet has gone further to include its real estate division that holds its various property portfolio.

Once it has been spun out, Econet InfraCo will be allowed to pursue other infrastructure related opportunities in the country including the recently announced Econet Industrial Park which is set to be developed on a 1 000-acre site near the Harare main airport.

The listing of Econet InfraCo on the VFEX will be done by introduction, which means the company will not be looking to raise new capital.
Instead, Econet InfraCo will issue shares to existing shareholders in the company as part of a package to create shareholder value.

In the published Circular, Econet has indicated that it will only list Econet InfraCo if the shareholders vote affirmatively to transition Econet Wireless from the main board of the ZSE to an Over-the-Counter system that enable Econet to set a minimum price for its shares in order to protect shareholder value.
The controlling shareholder has been precluded from the voting by the Zimbabwe Stock Exchange.