Vodacom Tanzania plans to raise $213mn in IPO

Vodacom Tanzania, a leading telecom company in the region, is gearing up to list on the Dar es Salaam Stock Exchange in an initial public offering (IPO) that aims to raise $213 million. The move, approved by the country's Capital Markets and Securities Authority, marks a significant development for the telecommunications sector in Tanzania. Moremi Marwa, CEO of the Dar es Salaam Stock Exchange, shared insights on this pivotal moment in an exclusive interview with CNBC Africa. The IPO, scheduled for next week, will be a watershed moment for Vodacom Tanzania, as it seeks to tap into local investors, in compliance with the country's regulations. With the IPO set to offer around 560 million shares, the telecom company is poised to make a substantial impact on the market. Marwa discussed the importance of the IPO in meeting the local ownership requirements set by law, emphasizing that Vodacom's listing will not only fulfill regulatory obligations but also attract significant investor interest. Despite missing earlier deadlines for local ownership thresholds, the approval of the IPO signals a positive turn for the company and the market. Addressing concerns about the recent drop in turnover at the Dar es Salaam Stock Exchange, Marwa expressed confidence that the upcoming IPO would inject new energy into the market. Many investors have been holding back on transactions in anticipation of Vodacom's listing, viewing the telecom giant as a lucrative investment opportunity. As a result, the market is experiencing a temporary slowdown, which is expected to reverse post the IPO. Looking ahead, Marwa shed light on the future prospects of other telecom companies like TIGO and Bati Airtel, which have also applied for listings on the exchange. The regulatory review processes for these companies are underway, with discussions focused on ownership structures and legal considerations. With Vodacom paving the way for telecom listings, the market is set to witness further transformations in the near future. In conclusion, Vodacom Tanzania's $213 million IPO is poised to reshape the telecom landscape in Tanzania, providing local investors with a unique opportunity to participate in the company's growth story. As the countdown to the IPO begins, all eyes are on the Dar es Salaam Stock Exchange as it prepares to welcome a new era of investment and expansion in the telecom sector.