Econet Zimbabwe share price took a hit last week falling by 10% to trade at $0.27 by end of day Thursday, 19 January 2017, after the country’s largest mobile operator issued a controversial $130 million rights issue to help raise funds to pay off its foreign debt.
The mobile operator did not trade on Friday, 20 January 2017.
The controversial rights issue is planning to raise $130 million (USD) through the offering of 1,082,088,944 ordinary shares and 263 050 614 class A shares which Econet requires to be paid directly into an offshore account in foreign currency to service its foreign debt which has accumulated to a reported figure of $128.19 million (USD) and needing repayment between 2017 and 2019.
The rights issue has been marred by controversy as the Herald reported that the circular was not approved by the Zimbabwe Stock Exchange Listings Committee but instead was approved solely by the CEO of Zimbabwe Stock Exchange who ignored objections from both the Committee and the Securities and Exchange Commission of Zimbabwe (SECZ).
Read more on Econet share price falling here.