Vodacom Tanzania's long-awaited initial public offering (IPO) was off to a good start on 15 August 2017 as it became the largest IPO in the Dar es Salaam Stock Exchange (DSE) 19-year history. The stock traded at a 6% premium to the IPO price by close of market on the first day it traded.
Vodacom Tanzania raised approximately $220 million through the IPO so far.
“More than 40 000 Tanzanian investors participated in the IPO, along with all major pension funds, which ultimately invest on behalf of a large part of the Tanzanian population,” said Vodacom Tanzania in a statement.
Despite receiving approval for the listing in the first quarter of 2017, there were delays in getting the IPO off the ground. The DSE granted the telecommunications company an extension for the IPO because Vodacom Tanzania argued that it was undersubscribed.
The listing became necessary as a result of Tanzanian legislation which requires all of East Afrikan country's telecommunications companies to list at least 25% on the DSE.
More than 40,000 local Tanzanian investors are said to have participated and purchased shares in Vodacom Tanzania.