By Staff Writer
Vodacom, the South African-based mobile phone operator, completed the biggest IPO in the history of Tanzania with a large offer size of circa R2.9 billion (TZS 476 billion).
The Tanzania’s biggest initial public offering (IPO) in 19 years closed at TZS 900, almost 6% higher than the TZS 850 listing price.
The IPO makes the Vodafone-owned Telco the first to comply with recent regulatory changes requiring all of Tanzania’s telecommunications companies to list at least 25% on the Dar es Salaam Stock Exchange (DSE).
More than 40 000 Tanzanian investors participated in the IPO, along with all major pension funds, which ultimately invest on behalf of a large part of the Tanzanian population.
“This is a momentous occasion for Vodacom and for Vodacom Tanzania. What is really exciting is the fact that many local investors are first time participants in the DSE so it significantly boosts local participation in the country’s capital markets,” Vodacom CEO Shameel Joosub said in a statement.
“We are pleased with what we have achieved through this IPO process making Vodacom Tanzania the second most valuable company by market capitalisation listed on the DSE.”
The Tanzania listing follows in the wake of the Vodacom Group concluding its largest ever acquisition.
Last week, Vodacom completed a R35 billion acquisition of a 35% stake in Safaricom, Kenya’s leading telecommunications company.
South African-based mobile phone operator Vodacom is close to securing its plan to buy 35% stake in Kenya’s Safaricom.
Vodacom minority shareholders overwhelmingly voted in support of the transaction.
The acquisition of Safaricom provides Vodacom with a unique opportunity to diversify its financial profile in a single transaction.
In May this year, Vodacom said the estimated R35 billion transaction would further enhance its position as a leading African mobile communications company.
“The vote of confidence from Vodacom’s minority shareholders is an important milestone in our journey to become a leading digital company and empowering a connected society. This is an exciting deal that provides Vodacom shareholders with access to a high growth, high margin and high cash generating business in the attractive Kenyan market,” Vodacom Group CEO Shameel Joosub said in a statement.