Tanzania: Vodacom IPO Tenure Pushed Back

By Abduel Elinaza

CAPITAL Markets and Securities Authority (CMSA) has extended Vodacom’s 476bn/- initial public offers by three more weeks to May 11.

CMSA extension based on Vodacom plea that should the IPO ended yesterday as planned many retail and institution investors will be left out. CMSA Principal Public Relations Officer Mr Charles Shirima told ‘Daily News’ yesterday the go ahead was given based on amount and size of the IPO before the public. “Vodacom said many will be left out if the deadline preceded as intended on April 19.

Some groups, like MPs also asked for the extension,” Mr Shirima said.

Mr Shirima did not rule the possibility of liquidity tightness that the economy currently experienced but said stock brokers are in better position to verify that. The new listing date on Dar es Salaam Stock Exchange (DSE) is now pegged on June 6. The leading telecom plans to raise 476bn/- in a share sale at 850/- each out of 560 million shares.

Apart from 11 brokers, the IPO is also supported by several banks including NBC–the receiving bank, CRDB, NMB, Bank M, and Equity Bank. The Orbit Securities Director General, Simon Juventus said the extension is set to benefit mainly retail investors as many had family commitment and Easter holiday cut down the number of IPO days.

“The demand for extension was lingering on the air as many tend to come at the deadline… especially retail investors,” Mr Juventus said. Orbit is the IPO sponsoring broker. He added: “We have many buyers today in our offices unlike any other days.

But soon after the news of extending the deadline, the pressure eases.” He said, however, the progress of the IPO was going on smoothly even before extension, though the true picture might be known in the next two to three days.

Vodacom extension came at a time when another IPO of TCCIA Investment Company Limited TICL missed the target after collecting 1.0bn/- from envisaged 45bn/-. TICL also applied for extension but want to continue with the IPO after Vodacom finalised its offer, which has now been pushed to May 11.

Vodacom controls 31 per cent stake in the country’s tele-market with some 12.4 million active subscribers at end of last year.

The country has over 40 million telesubscribers. A private twitter, DSE Insight, made a hypothesis poll at the beginning of this year to find out if the IPOs of three telecoms were held today which will attract more buyers.

The poll results showed that 71 per cent will go for Vodacom, 21 Tigo and 8.0 Airtel. DSE Insight does not belong to DSE.

Tanzania

Legislators Want Magufuli to Apologise Over His Earthquake Remarks

Opposition lawmakers yesterday took a swipe at President John Magufuli over several of his remarks, arguing that they… Read more »

Read this article:  

Tanzania: Vodacom IPO Tenure Pushed Back

Метки: , , , , , , , , ,

Short URL: http://www.eabizinfo.com/?p=98101

Posted by on Apr 20 2017. Filed under Technology. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

Comments are closed

Featured Links

    Search Archive

    Search by Date
    Search by Category
    Search with Google
    Log in | Designed by Gabfire themes