VODACOM Tanzania hit the bourse running yesterday after its share appreciated by almost 6.0 per cent to 900/- at the first day of listing.
The biggest telecom firm in the country just concluded its initial public offer that was twice extended to take almost six months. The IPO price was 850/- a share. The firm, the first telecom to list on Dar es Salaam Stock Exchange (DSE), listed 2.2billion shares.
The share listed increased the market capitalisation by 1.9tri/- to reach nearly 20tri/-. Minister for Finance and Planning Dr Philip Mpango said reinstated that the government would not hesitate to take to task telecom companies which don’t comply with the Electronic and Postal Communications Act (Epoca) of 2010.
The Act requires telecommunication firms to offload 25 per cent of their shares to the public and subsequently list at the DSE. DSE chief executive officer Moremi Marwa said equity based listed companies have increased to 26 companies.
Vodacom, a unit of Johannesburg-based Vodacom Group, began an IPO in March but extended twice as it failed to release its 476bn/- goal. Vodacom is the country’s largest operator with some 30 per cent market share, followed Tigo, Airtel and Halotel, a unit of Vietnam’s Viettel Group.