Vodacom Group Ltd.’s Tanzanian unit plans to raise 476 billion shillings ($213 million) in a share sale, the first of a series of initial public offerings by telecommunications companies on the domestic stock exchange this year.
The company plans to sell 560 million shares at 850 shillings each after it received approval Tuesday from the Capital Markets and Securities Authority, Godfrey Gabriel, head of corporate and market research at lead manager Orbit Securities Ltd., said Charles Shirima, a spokesman for the regulator.
The IPO is scheduled to take place on March 6 and would be restricted to national investors. "According to the law, it is only open to Tanzanians," Shirima said.
Telecoms companies were required by law to have 25 percent local ownership by Dec. 31, 2016. However, IPOs have been delayed as companies address issues raised by the regulatory process.
Shirima said offerings from the other two major operators - Millicom subsidiary Tigo and a local unit of India's Bharti Airtel - were being evaluated but he could not give a timeline for approval.
The government hopes the move will bring more transparency and offer the public a share in the industry's profits. Telecommunications is one of the fastest-growing sectors in Tanzania's economy.
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