Nominate female innovators of the year

Rewarding innovation
Female Innovator of
the Year Award.



ITWeb Africa

Tuesday, Oct 22nd

Vodacom Tanzania IPO opened up to foreigners

Vodacom Tanzania IPO opened up to foreigners

Vodacom's planned listing in Tanzania has now been opened up to foreign investors.

"Following recent changes to the Electronic and Postal Communications Act 2010 through the Finance Act 2017, Tanzania's Capital Markets and Securities Authority (CMSA) has issued a directive to extend the initial public offering (IPO) deadline by 10 working days to open the process to international investors," said Vodacom spokesperson Byron Kennedy, replying to questions from ITWeb.

Up until now, foreigners were unable to take part in the share sale because of Tanzanian domestic ownership rules.

"We believe this is a positive move for the more than 40 000 Tanzanians that have invested in the IPO, as it is expected to improve liquidity of the Vodacom Tanzania shares once they are listed," Kennedy added.

Last month, Vodacom said in a statement that more than 40 000 Tanzanians, many of them first time participants in the capital market, had subscribed for shares in the IPO.

Plans for a listing on the Dar es Salaam Stock Exchange (DSE) began after the Parliament of Tanzania in June 2016 amended regulation to make it mandatory for licensed telecommunications operators to list at least 25% of their authorised share capital on the DSE, to boost domestic ownership.

After a number of delays, Vodacom Tanzania was due to list on the DSE during June 2017, but with the new extension the IPO will only close towards the end of this month.

Vodacom plans to raise R2.8 billion through the listing, which would be Tanzania's biggest IPO to date. In March, the telco confirmed the CMSA had approved the telco offering 560 million shares to the public at 850 Tanzanian shillings (R4.99) per share.

The SA-based company is currently only listed on the Johannesburg Stock Exchange. Vodacom Tanzania was launched in 2000 and is the group's second biggest market, with almost 12.7 million active subscribers as at 31 March 2017.

Tigo Tanzania − a subsidiary of Swedish telecoms and media group Millicom − and the local unit of India's Bharti Airtel are also planning listings on the DSE.

ALSO ON ITWEB AFRICA

Vodacom, Seacom partner in African network venture Published on 16 October 2019

The companies enter a network partnership to initiate the next chapter of their African connectivity venture.

NEC XON wins global networking award for innovative African solutions Published on 18 October 2019

NEC XON has won ADVA's Global Partner of the Year award and received the award at its annual Summit held at Sun City in October, 2019.

Vodacom Foundation, Google to advance SA’s 4IR preparedness Published on 08 October 2019

The organisations forge a partnership that aims to empower and equip South Africans with digital skills that speak to the fourth industrial revolution.