Vo­da­com share sale raises $213m

The Star Early Edition - - COMPANIES -

VO­DA­COM Tan­za­nia, a unit of South Africa’s Vo­da­com Group, has sold all the 560 mil­lion shares on of­fer in its stock mar­ket flota­tion, with 40 per­cent bought by in­ter­na­tional in­vestors, the com­pany said. The dead­line for the con­clu­sion of the sale, which raised $213 mil­lion as planned, had been ex­tended twice and for­eign in­vestors al­lowed to par­tic­i­pate af­ter lo­cal buy­ers failed to take up all the shares on of­fer. Vo­da­com de­scribed the ini­tial pub­lic of­fer­ing (IPO), Tan­za­nia’s big­gest, as “a sig­nif­i­cant land­mark trans­ac­tion for the coun­try” hav­ing at­tracted more than 40 000 lo­cal in­vestors, most of whom were first-time par­tic­i­pants in the coun­try’s stock mar­ket. A list­ing on the Dar es Salaam Stock Ex­change was ten­ta­tively set for Au­gust 15, the com­pany said. The IPO was part of gov­ern­ment-im­posed rules on all tele­coms com­pa­nies to list part of their eq­uity lo­cally and for­eign­ers were ini­tially banned from par­tic­i­pat­ing in the share sale. That led the sale, which opened on March 9, to be un­der­sub­scribed and forced the gov­ern­ment to lift the em­bargo on off­shore in­vestors in June. The num­ber of cell­phone sub­scribers in Tan­za­nia in­creased by 0.9 per­cent last year to 40.17 mil­lion, driven by the launch of cheaper de­vices. - Reuters

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