Pushed back for ten days to al­low for­eign­ers to ac­quire stock

The Star Early Edition - - BUSINESS REPORT - Di­neo Faku

THE LIST­ING of Vodacom Tan­za­nia, on the Dar es Salaam Stock Ex­change (DSE), has been pushed back by 10 days to al­low re­gional and global for­eign­ers time to ac­quire the stock.

Vodacom spokesper­son By­ron Kennedy said yes­ter­day that fol­low­ing re­cent changes to the Elec­tronic and Postal Com­mu­ni­ca­tions Act 2010 through the Fi­nance Act 2017, Tan­za­nia’s Cap­i­tal Mar­kets and Se­cu­ri­ties Author­ity had is­sued a di­rec­tive to ex­tend the Ini­tial Pub­lic Of­fer­ing (IPO) dead­line by ten work­ing days to open the process to in­ter­na­tional in­vestors.

“We be­lieve this is a pos­i­tive move for the more than 40 000 Tan­za­ni­ans that have in­vested in the IPO as it is ex­pected to im­prove liq­uid­ity of the Vodacom Tan­za­nia shares once they are listed,” he said.

The Tan­za­nian par­lia­ment passed the Fi­nance Act last year to amended the list­ing re­quire­ments un­der the Elec­tronic and Postal Com­mu­ni­ca­tion Act, 2010. It in­tro­duced manda­tory list­ing re­quire­ments and re­quired li­censed telecom­mu­ni­ca­tions op­er­a­tors to list 25 per­cent of their au­tho­rised share cap­i­tal through an IPO on the DSE.

The amend­ments were made as the gov­ern­ment recog­nised the im­por­tance of the telecom­mu­ni­ca­tions sec­tor, to pro­mote so­cio-eco­nomic de­vel­op­ment.

For­eign in­vestors were al­lowed to buy shares af­ter the list­ing was stalled.

The list­ing of Vodacom Tan­za­nia, a sub­sidiary of Vodacom, South Africa’s big­gest mo­bile op­er­a­tor by sub­scribers, was sched­uled in May, but stalled to June.

Si­bonginkosi Nyanga, Mo­men­tum Se­cu­ri­ties, said that Vodacom Tan­za­nia had re­quested the reg­u­la­tor to ex­tend the IPO to for­eign­ers.

“Lo­cals did not man­age to mop up all the 25 per­cent stake due to liq­uid­ity con­straints in the Tan­za­nian mar­ket,” he said.

“The Tan­za­nian telecom­mu­ni­ca­tions mar­ket has sig­nif­i­cant po­ten­tial. How­ever, this dents the gov­ern­ment’s hope of broad-based eco­nomic em­pow­er­ment of its peo­ple through own­er­ship of its lead­ing com­pa­nies,” said Nyanga.

Vodacom which has been op­er­at­ing in Tan­za­nia for 17 years planned to raise $213 mil­lion (R2.85 bil­lion) to ad­here to a new law.

Key role

Vivek Mathur, the chief op­er­at­ing of­fi­cer for Vodacom’s in­ter­na­tional busi­ness said in a prospec­tus in Fe­bru­ary that the cap­i­tal rais­ing and list­ing were in line with the gov­ern­ment’s in­ten­tion to strengthen the coun­try’s telecom­mu­ni­ca­tions sec­tor to play a key role as the en­gine of eco­nomic growth and so­cio-eco­nomic de­vel­op­ment.

“This process also aims to widen fi­nan­cial in­clu­sion among Tan­za­ni­ans, and to eco­nom­i­cally em­power the peo­ple of Tan­za­nia,” he said. Tan­za­nia is the se­cond largest telecom­mu­ni­ca­tions mar­ket in East Africa be­hind Kenya.

Vodacom share rose 0.94 per­cent on the JSE yes­ter­day to close at R168.


A logo out­side the head­quar­ters of Vodacom Group in Jo­han­nes­burg. The com­pany’s list­ing on the Dar es Salaam Stock Ex­change has been pushed back by 10 days.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.