Vodacom Tanzania extends IPO closure

Tanzania

Vodacom Tanzania PLC said it has extended the deadline of its initial public offering going on in Tanzania.

The plan is to woo more local investors into the IPO.

It would be recalled that Vodacom Tanzania has in February announced that it received the go ahead to list 25% of their shares on the Dar es Salaam Stock Exchange, DSE.

The total number of shares to be offered for sale is 560 million shares to the public at TZS850 per share.

Charles Shirima, a spokesman for the Capital Markets and Securities Authority (CMSA) told Reuters News Agency that “The extension of the IPO is nothing unusual … it is aimed at giving Tanzanians more time to take part in the share sale,”

However, suggested that the extension of Vodacom’s IPO period followed a late surge in demand for shares from domestic retail investors.

“There has been a huge demand for the shares as we approached the last days of the IPO period and many investors called for an extension of the IPO,” Juventus Simon, general manager of Orbit Securities, told Reuters News Agency.

The Tanzanian unit is controlled by Vodacom South Africa which holds 65% stake in the company.