Despite low liquidity challenges facing investors, Vodacom Tanzania says it is optimistic of meeting its Initial Public Offer (IPO) target of raising Tshs 476billion before the deadline on Wednesday next week.
“We have seen a very strong response to the IPO since its launch on March 9 this year and we are seeing subscriptions levels increase dramatically as we approach the close of the subscription period on Wednesday April 19. I remain very confident that we will achieve our objectives accordingly,” Vodacom Tanzania Plc Managing Director Ian Ferrao said in a statement.
Vodacom Tanzania Plc, a subsidiary of South Africa’s Vodacom and the biggest telecommunication operator in Tanzania, floated 560 million shares, equivalent to 25 per cent of its total equity. It is expecting to raise Tshs 476billion.
The firm set its IPO share price at Tshs 850 shillings each. It is so far the only telecoms firm to launch an IPO under mandatory listing rules under the Electronic and Postal Communications Act of 2010 which requires telecommunications firms to offload 25 per cent of their stake to the public.
The Vodacom Tanzania IPO is Tanzania’s biggest ever, according to stock brokers and they predicted it would attract strong interest from investors.
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