The Tanzanian Capital Markets & Securities Authority (CMSA) has approved Vodacom Tanzania’s prospectus ahead of its Initial Public Offer (IPO) and subsequent listing of 25% of its shares on the Dar es Salaam Stock Exchange (DSE).
Speaking at the Company’s headquarters, Vodacom Tanzania’s Managing Director, Mr. Ian Ferrao said, “Following an Extra-Ordinary Meeting held on 27 February 2017, the CMSA has approved Vodacom Tanzania offering of 560 million shares to the public at TZS850 per share.”
The Electronic Postal and Communications Act, as amended by the Finance Act 2016, requires all telecommunications licensees in Tanzania to have an IPO and list 25% of their shares on the DSE.
The terms agreed by the CMSA values the 25% stake at TZS476b.
Details of the IPO, including when and how eligible potential investors will be able to subscribe for Vodacom Tanzania’s shares, will be announced in due course, the company indicates.
Tanzania’s new Finance Bill enforced on July 1st 2016 requires Tanzanian telecom companies to list at DSE by the end of 2016.
According to the Bill, network facilities, network services, and application services licensees (including mobile operators) have to list 25% of their shares.
To date, only Vodacom and Tigo have submitted their prospectus to CMSA.