TIGO Tanzania, a unit of Millicom International Cellular, bids to go public has reached over 80 per cent and share sales may start before the second quarter ends.
However, experts raised doubt of staging initial public offer (IPO) roadshow due to the coronavirus pandemic that limited public gathering in the country.
According to the sources close to Tigo IPO issuance matter, the prospectus preparations are almost ready and only minute details remains to be dealt at.
“Tigo public share is almost ready…at 80 per cent and IPO may take off before end of June,” the source told 'Daily News' yesterday.
The source said “I don’t have the specific date yet, but the process has reached an advanced stage…they are currently working on a few final issues before the IPO is announced.”
The source, however, said the IPO may be delayed by public ban on gathering after the country register 12 cases of the deadly virus disease.
“The virus may delay the IPO since road show will depend heavily on experts containing the contagion before the government 30 days public gathering ban,” the source said.
Since last year media has been reported possible date of Tigo’s IPO but failed to materialise ever since. However, the source is certain this time around the primary will go through in this first half.
If Tigo IPO sailed through it will become the second telecom to list on DSE after Vodacom successful raised 476bn/-in 2017.
Amendment to the Electronic and Postal Communications Act of 2010 made it a legal requirement for the country’s telecoms operators to float 25 per cent of their shares on the DSE.
Tigo plans were, however, delayed by a legal dispute over ownership which was decided late last year.
Tanzania Communications Regulatory Authority (TRCA) latest data showed Tigo is the third largest telecom in the country controlling 26.3 per cent of total subscribers in the country.
Tigo had 12.57 million subscribers at the end of quarter four of last year.
The largest telco was Vodacom controlling 33 per cent of market share with 15.67 million subscribers followed by Airtel with 26.6 per cent share and 12.72million customers.
Tanzania has seven telecommunication companies. Others are Halotel controlling 10 per cent and TTCL and Zantel commanding 2.0 per cent each while Smile is below 1.0 per cent.