Only 10.7 percent of 100 mil
By Samuel Abate
Ethio telecom intends to re-issue unsold shares after its initial attempt to raise equity by selling off a 10 percent stake to the public garnered poor results.
The offering, which began in October 2024 and lasted four months, saw more than 47,000 shareholders acquire equity in the state-owned giant, buying up 10.7 million shares valued at 3.2 billion birr.
The minimum purchase limit was set at 33 shares, while the ceiling was 3,333 shares.
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The company, which has total assets valued at 300 billion birr, had initially aimed to raise 30 billion birr. However, the actual sales and proceeds only amounted to 10 percent of the target.
During a press conference this week, CEO Frehiwot Tamiru attributed the shortfall to the restriction that only Ethiopians could purchase shares, the purchase limit of no more than one million birr per individual, the prohibition on institutions purchasing shares, and a lack of sufficient information about the share sale among the public.
“Discussions are ongoing with relevant parties regarding the disposition of the remaining shares, and further sale announcements will be made based on government directives,” said Frehiwot.
The CEO did not comment on how Ethio telecom plans to utilize the 3.2 billion birr raised from the share sale. However, she confirmed that the process of share allocation has begun.
She also stated that only Ethiopian citizens would be eligible to buy equity in Ethio telecom in upcoming offers.
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