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UPDATE 1-Tanzania's Vodacom seeks to raise $213 mln in listing
February 28, 2017 / 11:36 AM / 9 months ago

UPDATE 1-Tanzania's Vodacom seeks to raise $213 mln in listing

(Updates with quotes, context)

By Katharine Houreld

NAIROBI, Feb 28 (Reuters) - Vodacom’s Tanzanian subsidiary received approval on Tuesday to list on the Dar es Salaam stock exchange and aims to raise 476 billion shillings ($213 million) in the initial public offering (IPO), the market regulator said.

Vodacom plans to sell 560 million shares at 850 shillings each, said Charles Shirima, a spokesman for the Capital Markets and Securities Authority.

The IPO is scheduled to take place on March 6 and would be restricted to national investors, he said.

“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.

$1 = 2,230.0000 Tanzanian shillings Reporting by Katharine Houreld; Editing by Susan Fenton and Susan Thomas

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