Ethiopia's Ethio Telecom Falls Short on IPO Ambitions

Ethio Telecom, Ethiopia's state-owned company, sold only 10.7% of its shares in its initial public offering, part of Prime Minister Abiy Ahmed's plan to increase private investment. Generating 3.2 billion Birr, the IPO faced challenges including restrictions limiting sales to Ethiopian citizens and a 1 million Birr cap per investor.

In a move to boost private investment, Ethiopia's government orchestrated an initial public offering for Ethio Telecom. However, the sale saw only 10.7% uptake, amounting to 3.2 billion Birr from 47,377 investors, Ethio Telecom's CEO Frehiwot Tamiru announced at a press briefing in Addis Ababa.

This initiative, part of Prime Minister Abiy Ahmed's broader economic plan, was narrowed to Ethiopian citizens, excluding those with foreign citizenship. The low participation was also attributed to a cap preventing individual investors from purchasing more than 1 million Birr in shares.

The offering faced criticism for its restrictive conditions, impacting the government's ambition to attract substantial private investments into the Horn of Africa's largest telecom service provider.

(With inputs from agencies.)