Zambia hints at fifth telco operator

A fifth telco
for Zambia?

Enough room says
industry regulator.

ITWeb Africa

Thursday, Feb 20th

Vodacom Tanzania targets Tzs 476bn in initial IPO

Vodacom Tanzania targets Tzs 476bn in initial IPO

Vodacom Tanzania, a subsidiary of Vodacom Group South Africa, has confirmed listing of 25% of its shares on the Dar es Salaam Stock Exchange (DSE).

This follows an announcement by the operator in November 2016 that it had issued a draft prospectus for its proposed IPO (Initial Public Offer) and the listing of its shares on the DSE.

At the time Vodacom Tanzania, which is reported to have 31% market share, described the move as a significant step towards implementing the Electronic Postal and Communications Act, as amended by the Finance Act 2016, which requires all telecommunications licensees to issue 25% of their shares on the DSE.

This week the company issued a statement in which Managing Director, Ian Ferrao said, "Vodacom Tanzania confirms that the Capital Markets & Securities Authority (CMSA) has approved Vodacom Tanzania Plc's prospectus ahead of its Initial Public Offer (IPO) and subsequent listing of 25% of its shares on the Dar es Salaam Stock Exchange (DSE). Following an Extra-Ordinary Meeting held on 27 February 2017, the CMSA has approved Vodacom Tanzania offering of 560 million shares to the public at Tzs. 850 per share

Ferrao reiterated compliance with the Electronic Postal and Communications Act, and said the terms agreed by the CMSA values the 25% stake at Tzs 476 Bn.

"Details of the IPO, including when and how eligible potential investors will be able to subscribe for Vodacom Tanzania's shares, will be announced in due course," said Ferrao.

Reuters quotes Charles Shirima, spokesman for the CMSA, as saying the IPO is scheduled for 6 March and would be restricted to national investors.

Information available on Vodacom Tanzania's website states that in 2016 the company had over 10 million subscribers, with GPRS countrywide covering 75.82% of the population, EDGE in selected regions covering 50% of the population, and 3G with HSDPA also in specific areas.

The telecommunications market in Tanzania features several operators including Tigo, Smile, TTCL, Zantel, and Zain (Bharti Airtel).

In addition to Tanzania, Vodacom currently operates in DRC, Lesotho, Mozambique and South Africa and provides business managed services to enterprises in 40 countries across Africa.

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