FBC Securities (FBCS) says Econet Wireless Zimbabwe’s proposed delisting from the Zimbabwe Stock Exchange (ZSE) is likely to trigger a significant reallocation of capital, with much of the telecoms giant’s near US$740 million market capitalisation, recorded as at December 15, 2025, expected to migrate to Delta Corporation.
According to the brokerage, such a shift could propel Delta’s market value beyond the US$1 billion mark, from US$964,78 million as at December 15, 2025, reinforcing its status as the market’s dominant counter.
Econet is currently engaging the ZSE on the publication of a shareholder circular outlining its proposed voluntary delisting, citing persistent undervaluation relative to regional peers.
Last month, the company said exiting the bourse would help correct what it described as a “grossly undervalued” share price, improve access to capital and enhance long-term competitiveness.
“With Econet exiting the market, a significant portion of passive and active capital currently invested in the counter, particularly from institutions, is likely to be reallocated rather than withdrawn entirely,” FBCS said in its 2026 Economic Outlook report.
“In this context, Delta becomes the natural alternative, given its depth of liquidity, strong free float, consistent dividend capacity and defensive earnings profile.
“This could translate into improved trading volumes, tighter bid-ask spreads and a valuation re-rating as Delta increasingly assumes the role of the de facto market anchor stock.”
However, the brokerage said Delta’s current valuation may already be stretched.
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At a prevailing share price of US$1,18, FBCS believes the counter is trading above its intrinsic value.
“We, therefore, view the present level as an attractive exit point for investors to lock in gains,” FBCS said.
Delta’s December market capitalisation of US$964,78 million compares with total assets of US$572,11 million as at September 30, 2025, implying that the stock is trading at a substantial premium to book value.
Operationally, FBCS said Delta delivered a robust performance in the first half of its 2026 financial year, ended September 30, 2025, underpinned by resilient consumer demand, disciplined pricing and sustained brand leadership across its beverages portfolio.
“Volume growth was broad-based, with the flagship lager beer volumes increasing by 21% year-on-year, reflecting rising consumer incomes and stable pricing,” FBCS said.
“These operating gains translated into strong financial performance, with group revenue rising by 32% year-on-year to US$514 million, while profit before tax almost doubled to US$104,8 million.
“However, margin expansion from higher throughput and lower input costs was partly offset by the under-recovery of sugar tax, with approximately US$15 million paid during the period, more than half of which was absorbed by the group to maintain competitiveness.”
Following its delisting, Econet plans to separately list its infrastructure assets, including real estate, telecommunications towers and renewable energy projects, on the Victoria Falls Stock Exchange (VFEX) under a new subsidiary, Econet Infrastructure Company Limited (Econet InfraCo).
News of the proposed delisting and restructuring helped drive a 90,32% year-on-year surge in Econet’s share price on the ZSE last year.
FBCS warned, however, that Econet’s exit would force a structural reset of the ZSE, given the company’s historical role as a blue-chip hedge against macroeconomic instability.
“The Zimbabwe Stock Exchange, a ZiG-denominated bourse, now faces a year of fundamental recalibration; the removal of its traditional inflation-hedge premium necessitates a market correction based purely on real corporate earnings, likely compressing price-to-earnings multiples and constraining liquidity as domestic investors cautiously assess the new environment,” FBCS said.
“The ZSE’s performance will act as a direct barometer for the market’s confidence in the Reserve Bank ’s disinflation programme: success in achieving single-digit inflation and fostering genuine ZiG demand could gradually attract long-term domestic savings, while any loss of monetary policy credibility would severely undermine the exchange's foundation.”
As a result, FBCS said its investment thesis had become split as the VFEX offered a more stable, dollarised platform for equity exposure, while the ZSE represented a higher-risk strategic bet on the successful stabilisation and institutionalisation of the local currency.
The ZSE’s market capitalisation stood at ZiG113,21 billion (US$4,41 billion) as of Tuesday, up from ZiG61,47 billion (US$2,33 billion), translating into a real year-to-date gain of nearly 89%.
FBCS said part of this rally was driven by Econet, a contribution the exchange will forgo once the company formally delists.
