InfraCo launches IPO with US$250m free shares windfall for Econet shareholders

STAFF WRITER
Econet InfraCo, formerly listed on the Victoria Falls Stock Exchange (VFEX) on Friday with a bold and unconventional move, handing existing shareholders a US$250m windfall in free shares.
In a departure from traditional initial public offerings (IPO), the infrastructure unit did not raise capital by selling shares to new investors.
Instead, it distributed 25% of its equity,valued at approximately US$250m to existing Econet shareholders as a dividend in specie, effectively rewarding them with shares rather than cash.
The allocation, which benefitted all shareholders including the majority shareholder, is widely seen as the largest dividend ever issued by a Zimbabwean company.
The listing follows Econet Wireless Zimbabwe’s strategic restructuring and delisting from the Zimbabwe Stock Exchange (ZSE), which carved out its infrastructure assets into a standalone entity.
Econet will retain a 70% stake in InfraCo, while the remaining shareholders now hold both a direct stake in InfraCo and an indirect interest through their Econet holdings.
This dual exposure creates a unique income proposition, with shareholders poised to receive dividends from both Econet and InfraCo, a structure that has never been done before in the market.
InfraCo consolidates Econet’s telecommunications towers, energy systems, and strategic real estate into a single, scaled platform designed to deliver predictable, long-term income streams while unlocking growth opportunities across key sectors of the economy.
As part of the restructuring, the distribution of the 25% stake allows shareholders to directly participate in the infrastructure platform’s future earnings and expansion trajectory.
The high-profile listing ceremony attracted strong participation from government officials, regulators, capital markets leaders, and institutional investors, signalling growing confidence in both the InfraCo platform and Zimbabwe’s evolving capital markets.
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, described the listing as a strong indicator of the country’s economic direction.
“The listing of Econet InfraCo on the Victoria Falls Stock Exchange is a statement about where Zimbabwe is going, about the maturity of our capital markets, and the confidence that long-term investors are placing in our infrastructure story. Infrastructure remains the foundation upon which sustainable economic growth is built,” Professor Ncube said.
Econet InfraCo enters the market as a multi-asset infrastructure platform spanning connectivity, energy, and property, with a strategic focus on scale, efficiency, and long-term value creation.
Econet board chairman Godfrey Gomwe said the business is already operating at scale and is positioned for disciplined growth.
“Econet InfraCo is a multi-asset infrastructure platform already operating at scale, we are not building from scratch. Our focus is on disciplined execution, strong governance, and unlocking the full value of our asset base.”
He added that the company presents a compelling investment case anchored on immediate returns and future growth.
“We offer investors a clear and compelling proposition: yield today, growth tomorrow, and sustained value over time.”
The listing positions Econet InfraCo as a credible, execution-driven infrastructure platform capable of attracting both local and international capital, while supporting Zimbabwe’s long-term infrastructure development and digital transformation agenda.
Trading in the stock is expected to commence on March 31, 2026.