DAR ES SALAAM, April 19 Vodacom Tanzania Plc, a
subsidiary of South Africa's Vodacom Group, has
extended the offer period for its initial public offering by
three weeks to give local investors more time to take part in
the share sale, an official from the market regulator said on
The company's plan to raise 476 billion shillings ($213.45
million) by selling 560 million shares at 850 shillings each is
Tanzania's biggest ever share sale. The IPO is only open to
local investors, though foreign investors can take part in the
The offer period, which was initially scheduled to end on
Wednesday, will now run to May 11 and the market listing is
likely to take place on June 6, Charles Shirima, a spokesman for
the Capital Markets and Securities Authority (CMSA), said.
"The extension of the IPO is nothing unusual ... it is aimed
at giving Tanzanians more time to take part in the share sale,"
Shirima told Reuters.
Analysts said the extension of Vodacom's IPO period followed
a late surge in demand for shares from domestic retail
"There has been a huge demand for the shares as we
approached the last days of the IPO period and many investors
called for an extension of the IPO," Juventus Simon, general
manager of Orbit Securities, told Reuters.
The country's eight telecom operators are required by law to
have 25 percent local ownership via a stock market listing.
The government hopes the listings will bring more transparency
and offer the public a share in the industry's profits.
Telecommunications is one of the fastest-growing sectors in the
Tanzania, east Africa's second-biggest economy, posted a 0.9
percent annual increase in the number of mobile phone
subscribers in 2016 to 40.17 million.
As in other African countries, mobile phone use has surged
in Tanzania over the past decade, helped by the launch of
The other two major operators, Millicom
subsidiary Tigo and a local unit of India's Bharti Airtel
, have also submitted their prospectuses to the capital
markets regulator for IPOs to comply with mandatory listing
regulations, according to the CMSA.
Orbit Securities Company Limited is the lead transaction
adviser for Vodacom Tanzania's IPO while National Bank of
Commerce Ltd is the lead receiving bank, according to the
Vodacom Tanzania IPO prospectus.
Vodacom is 65 percent owned by mobile phone group Vodafone
, according to its website.
($1 = 2,230.0000 Tanzanian shillings)
(Reporting by Fumbuka Ng'wanakilala; Editing by Aaron Maasho
and Jane Merriman)