The Ethiopian government sold 10% of its shares (10.7 million shares) to the state-owned company Ethio Telecom for 3.2 billion birr ($24 million) at a price of 300 birr per share in an IPO that lasted more than four months. This is reported by foreign media.
Ethiopia Investment Holdings, which controls 40 state-owned companies, including Ethio Telecom, planned to sell 100 shares to raise 30 billion birr, but the offer did not raise the planned amount because local and institutional investors were not allowed to participate in the IPO.
However, the sale of shares provides an opportunity to launch the Ethiopian Securities Exchange, which is a key factor for the development of the economy through investment. In 2024, the government lifted half a century of control over the currency and decided to relax business rules to attract investment.
In Ethiopia, the stock market operated until a military coup in 1974, as a result of which stock trading was banned.
The new exchange aims to bring up to 50 companies to the stock exchange within five years, some of which will be listed "as part of the introduction" (listing by introduction) without an IPO.
Ethio Telecom is an Ethiopian telecommunications company providing Internet and telephone services. Ethio telecom is owned by the Government of Ethiopia and maintains a monopoly on all telecommunications services in Ethiopia. The headquarters is located in Addis Ababa (Ethiopia). The company is part of the "big five" group of Ethiopian state corporations, including Ethiopian Airlines, Commercial Bank of Ethiopia, and Ethiopian Insurance Corp. and Ethiopian Shipping Lines.
Ethiopian Investment Holdings is a strategic investment unit focused on creating added value in various sectors. The company manages a portfolio of assets in the chemical industry, construction and real estate, energy and communications, finance, transport and logistics. The headquarters is located in Addis Ababa (Ethiopia).
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