Ethiopia to Raise $255M in First IPO to Launch Stock Exchange
TLDR
- Ethiopia plans $255 million IPO for Ethio Telecom, marking country's stock exchange launch.
- Ethio Telecom to sell 100 million shares via mobile money platform, telebirr, by January 3, 2025.
- IPO heralds broader reforms to attract investment and rebuild Ethiopia's economy under PM Abiy Ahmed.
Ethiopia is set to raise 30 billion birr ($255 million) by selling 100 million shares in Ethio Telecom, marking the country’s first initial public offering (IPO) and paving the way for the launch of its stock exchange.
Ethiopia Investment Holdings, which controls 27 state-run companies, announced the IPO as part of broader reforms under Prime Minister Abiy Ahmed’s administration, which aims to attract investment and rebuild the war-torn economy.
Ethio Telecom, the nation’s largest mobile service provider with 78.3 million customers, will list its shares on the Ethiopian Securities Exchange (ESX) after January 3, 2025, with the sale conducted via its mobile money platform, telebirr. The IPO will also kickstart Ethiopia’s long-awaited stock market, with the government planning to sell shares in six companies over the next five years.
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Key Takeaways
Ethiopia’s debut IPO of Ethio Telecom represents a significant step in the country’s economic liberalization, opening its market to investors and launching its first stock exchange. With plans to privatize additional state-run companies, the government aims to attract new investment to support economic growth and recovery from the recent conflict. It recently unpegged its birr currency from the US dollar, unlocking $20 billion in financing, including a $3.4 billion loan from the IMF. This move, alongside the government’s restructuring of its $1 billion Eurobond, aims to stabilize the economy. The stock exchange is expected to provide a platform for local companies to raise capital and fuel expansion in East Africa’s biggest economy.
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