Vodacom TZ IPO Now Open To Kenyans - Magufuli Slowly Giving In

via The East African

Tanzania has now opened the initial public offering (IPO) market to all East Africans, lifting a ban that had locked out foreigners from buying shares in ongoing listing of telecoms at the Dar es Salaam Stock Exchange (DSE).

The removal of the restrictions offers hope to the country’s largest telco Vodacom, which recently offered 25 per cent of its shares in an IPO, but failed to raise the Tsh560 billion ($248.5 million) exclusively allocated to Tanzanians.

“The restrictions on participation of non-Tanzanian investors in the IPOs of the telecommunication companies have been removed following the amendments of the Electronic and Postal Communication Act (EPOCA) 2010 by the Finance Bill 2017,” the Capital Markets and Securities Authority (CMSA) said in a statement Wednesday.

CMSA said plans are being finalised “to enable public participation in the IPOs”.

In June 2016, Tanzania enacted the EPOCA law that required telcos to sell a quarter of their shares on the DSE to boost domestic ownership. The country, however, barred foreign investors, including East Africans, from participating.

READ: East African investors barred from Dar telcos IPO

Vodacom, a unit of South Africa’s Vodafone Group, was forced to extend its offering for three weeks after Tanzanians failed to absorb its shares. The IPO had been offered on March 9 to close on April 19, before the date was postponed. It has yet to announce the results.

READ: Why Vodacom Tanzania is extending IPO deadline

Its listing on the DSE was also pushed from May to June.

“With regard to the Vodacom Plc IPO, the issuer is expected to announce before end of this week the modality of finalising the offering and provide information on the listing date,” the CMSA head of public relations, Charles Shirima said Wednesday.

They had no choice simply because they couldn’t raise that money in full in Tz. Their capital market isn’t big. I even doubt it would still work. They will need to cross list here at NSE as well.

Kindly inform us when it is ready for us to buy

yes let us know so we buy!

Hope you meant, couldn’t. Tanzanian market share haina pesa mingi. Kumbuka Magufuli alifunga mining to companies

I meant couldn’t. Corrected. $285 million is too much for them. Their capital market is too small for that.

Was in Dar last week that chap is slowly strangling that country with roadside declarations all multinationals are afraid to invest , nothing investors hate like unpredictability, kila mtu analia hakuna pesa ! He should find a balance huyu jamaa hana reverse gear hata akiona amefanya makosa!

hahahaha

No wonder we call him Maghufool. It was even reported last year civil servants were afraid of making decisions so as not to piss off the President. ikifika mahali hata minister anaogopa kupeana direction juu anaogopa president, jua tu the next thing is collapse.

I have been saying the that for a while but his supporters here are too busy cheering him. His dictatorship has stifled the entire civil service, afraid to make decision under the the fear of the sack. The private sector is stalling on a cloud of unpredictability from megafools.