Zim’s Econet Wireless yesterday agreed to a 10 for 1 split of its US$6 worth share to make the shares affordable to smaller investors.
The new share will go for US$0.60 each.
The price looks to low for any trader but according to Econet’s board the firm did a study and found out that $6 share price was too high for local investors and only foreign investors were buying into the firm.
According to the founder of the company, Mr Strive Masiyiwa, Econet has thousands of small investors but according to him they were not active in the running of the firm, so he personally pushed for the adjustments.
Econet is also working to change the country’s Stock Exchange to enable traders trade electronically and easier for the locals.
Zimbabwe is known for its political stand n foreign investors and analysts view the firm’s decision might have been influenced by the regime.
