TIGO Tanzania, a unit of Millicom International Cellular, is now finalising its initial public offer plans on Dar es Salaam Stock Exchange (DSE) to go public next month.
The Principal Public Relations Manager of the Capital Markets and Securities Authority (CMSA), Charles Shirima, said Tigo, was now at an advanced stage to fulfill conditions for initial public offer (IPO) to become the second telecom to list on DSE after Vodacom raised 476bn/- in a successful IPO in 2017.
“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,” he told the `Daily News’ in an interview.
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’s IPO plans comply with amended Electronic and Postal Communications Act of 2010 which made it a legal requirement for the country’s telecoms operators to float 25 per cent of their shares on the DSE.
The plans were, however, delayed by a legal dispute over ownership which was decided late last year. Mr Shirima, however, declined to number of shares the second largest telco will offload to the public saying they are not supposed to do so.
“We (CMSA) are not in position to disclose the number of shares to go public for the time being. That will be disclosed when the process is completed,” he said.
Tanzania Communications Regulatory Authority (TRCA) data showed Tigo is the second largest telecom in the country with 29 per cent of the market share. Vodacom leads with 32 per cent of market share as at end of last year.
Tigo had 12,583,640 subscribers as at last December and 7,586,240 mobile money subscribers controlling 32 per cent of market share behind Vodacom with 39 per cent.
Vodacom initial public offer (IPO) was successful 100 per cent after meeting the target of raising 476bn/- with 60 per cent of the offer was raised through subscriptions by Tanzania investors and 40 per cent of the offer from international investors.
It floated 560 million ordinary shares, accounting for 25 per cent stake in the company, traded at a price of 850/- per share.
The price, however, slumped to 800/- as of last Friday.
Apart from Vodacom and Tigo, Tanzania has five other mobile telephone firms - Airtel with 25 per cent market, Halotel 9.0 per cent, Zantel 3.0 per cent, TTCL 2.0 per cent and Smart 0.3 per cent as at 31 of December last year, according to TCRA statistics.