August 8, 2017 / 3:31 PM / 2 years ago

UPDATE 1-Vodacom Tanzania IPO fully subscribed after foreign investors buy 40 pct

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By Fumbuka Ng’wanakilala

DAR ES SALAAM, Aug 8 (Reuters) - Vodacom Tanzania, a unit of South Africa’s Vodacom Group, has sold all the 560 million shares on offer in its stock market flotation, with 40 percent bought by international investors, the company said on Tuesday.

The deadline for the conclusion of the sale, which raised 476 billion Tanzanian shillings ($213 million) as planned, had been extended twice and foreign investors allowed to participate after local buyers failed to take up all the shares on offer.

Vodacom described the initial public offering (IPO), Tanzania’s biggest ever, as “a significant landmark transaction for the country” having attracted more than 40,000 local investors, most of whom were first-time participants in the country’s stock market.

A listing on the Dar es Salaam Stock Exchange was tentatively set for Aug. 15, the company said.

The IPO was part of government-imposed rules on all telecoms companies to list part of their equity locally and foreigners were initially banned from participating in the share sale.

That led the sale, which commenced on March 9, to be under-subscribed and forced the government in June to lift the embargo on offshore investors.

The number of mobile phone subscribers in Tanzania rose 0.9 percent last year to 40.17 million, driven by the launch of cheaper mobile phones. ($1 = 2,233.0000 Tanzanian shillings) (Reporting by Fumbuka Ng’wanakilala; Writing by Elias Biryabarema; Editing by David Evans and David Holmes)

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