Ethio Telecom issues 100 million new ordinary shares
The sale marks an important new phase in the country's drive to attract more private capital into its economy.
The government of Ethiopia has issued 100 million new ordinary shares in Ethio Telecom, the country’s state-owned telecoms monopoly. This is ahead of the formal listing of the company on the Ethiopian Securities Exchange (ESX) early next year.
The sale, for 10% of the company, is open to Ethiopian citizens only. It also marks an important new phase in prime minister Dr. Abiy Ahmed’s drive to modernise the Ethiopian economy and open it up to more private capital.
“Shares in the company are availed through telebirr SuperApp platform in order to ensure that the share sale is inclusive,” a company statement said.
The minimum share price has been set at 9,900 birr (33 shares) while the maximum has been set at 999,900 birr (3,333 shares). However, shares cannot be traded until the company’s listing on the ESX is completed early next year.
Speaking at the AFSIC – Investing in Africa conference in London last week, Michael Habte, ESX chief operating officer, said that the exchange expects more listings from telcos, banks, insurers and state-owned enterprises (SOEs) over the next 12 to 18 months.
Mr Habte also told the AFSIC audience that the ESX is building an exchange that is a true “financial market infrastructure provider” that will include not just equities but short-term money market instruments, government treasuries and an SME alternative market.
SOEs are an important element in Ethiopia's economic makeup. Ethiopian Investment Holdings (EIH), the country’s sovereign wealth fund, holds 26 SOEs including the Commercial Bank of Ethiopia, the Ethiopian Insurance Corporation, and the Ethiopian Airlines Group. The EIH plans to sell equity stakes in some of these businesses via the ESX.
Ethio Telecom boasts over 70 million customers. In contrast, Safaricom Ethiopia, a subsidiary of Kenya’s Safaricom Plc, recently reported 4.6 million three-month active customers and 3.4 million one-month active customers on its network.
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