Vodacom Tanzania begins IPO as MD sees acquisitions

10 March 2017

Telecoms

Vodacom Group’s Tanzanian unit will begin an initial public offering on Thursday, the first in a series of listings expected on the domestic exchange that may spur mergers and acquisitions, Managing Director Ian Ferrao said.

The company plans to raise 476bn shillings ($213m) in an offering of 560 million shares at 850 shillings each, according to a prospectus issued to brokers on Tuesday and confirmed by Ferrao.

It expects to list on the Dar es Salaam Stock Exchange on May 16.

Tanzania in June enacted a law requiring phone companies to sell at least 25% of their businesses to the public to boost local ownership. The industry has more than quadrupled its subscriber base over the past decade to more than 40 million users, according to the industry regulator.

Vodacom Tanzania competes with eight companies including Millicom International Cellular SA’s Tigo, Bharti Airtel’s domestic subsidiary and Halotel, a unit of Vietnam’s Viettel Group.

By going public, transparency will improve as companies will be required to publish their financial statements, Ferrao said in an interview.

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