Omega Ukama 
ZECO Holdings’ (ZECO) stock is leading the Zimbabwe Stock Exchange (ZSE) gainers this year, having so far put on 560 percent, official figures show.
The property investment and development firm, which just recently pivoted from being a rolling stock company, has been technically undervalued for years, with a market anchoring capitalisation of about $15 million against a book value of $2,5 billion as at June 30, 2022.
It has been repricing, although at a glacial pace due to its illiquidity. The counter is the least frequently traded on the exchange. It was involved in only six trades this year.
The repricing has been catalysed somewhat by the company’s restructuring, which shareholders approved in August.
Since that shareholder meeting, the company’s stock has gained about 15 percent. In comparison, the ZSE All Share Index was down about six percent during the same period.
Shares in the company were suspended from trading on the Zimbabwe Stock Exchange (ZSE) in February after it implemented the restructure without shareholder approval, a contravention of listing rules.
The counter, however, resumed trading a few days later after the local bourse was satisfied that the company had taken steps to “purge its regulatory violations”.
Between February and August, ZECO gained 44 percent. The All Share Index was down about three percent during the same period.
Meanwhile, the company says it will continue to pursue new strategic directions to preserve and enhance shareholder value.
“With the country’s economic growth forecast being downgraded to 4,6 percent from 5,5 percent with persistent inflationary pressures and high borrowing costs, the operating environment in the short-term will be restrictive.
We expect the new path the company has taken to cushion any negative effects, although we expect a slight reduction in activities,” chairman Benjamin Rafemoyo said in a statement accompanying ZECO’s results for the half-year to June 30, 2022.
“These positives will likely improve the group performance. The company will continue to pursue new strategic directions to preserve and enhance shareholder value,” he said.
