Tigo complying with Tanzania’s IPO deadline

Tigo Tanzania has begun the process of listing its shares on the Dar es Salaam Stock Exchange (DSE).

The government of Tanzania has stipulated that all eight of the country’s operators must begin floating at least 25% of their shares before December 31st. Telecom firms initially objected to the move, arguing that it went against principles of free enterprise.

The deadline has been set to allow the government to impose transparency measures that will – it claims – deliver benefits in terms of taxation, as well as allowing citizens to invest personally in the country’s mobile ecosystem. Operators that fail to meet the deadline could face fines, or even lose their licences.

Vodacom Tanzania submitted its draft IPO prospectus to the Capital Markets and Securities Authority (CMSA) and the DSE last month, becoming the country’s first operator to do so. Market leader Tigo has now also completed these requirements.

Tigo has a market share of around 32%, putting it ahead of Airtel – which has 21% - and Vodacom with 18%. Airtel has thus far made no moves to begin its IPO, nor has it commented on the matter. Previously, Vodacom and Tigo both confirmed that they would list ahead of the deadline.