MIC Tanzania, Tigo, has officially submitted application for Initial Public Offer (IPO) and listing on the Dar es Salaam Stock Exchange (DSE).
Tigo, the second biggest mobile phone service provider, has applied for the IPO to the Capital Markets and Securities Authority (CMSA). CMSA Principal Public Relations Officer Charles Shirima told the 'Daily News' in Dar es Salaam yesterday that the authority has received and is working on the telecommunication company's draft prospectus.
"CMSA standard time to work on the prospectus is within 21 days ... this, however, depends on whether the document meets the authority's standard requirements," Mr Shirima said.
According to the Electronic Postal and Communications Act, 2016 all the telecommunications licensees are required to offload 25 per cent of their shares to the public through the stock market. Mr Shirima, however, could not reveal the amount of the IPO, saying "the info is still classified until the prospectus is approved ... but Tigo may tell you.
" Tigo, with 11.6 million subscribers, also submitted preliminary application to DSE for listing on the bourse's Main Investment Market (MIM).
Tigo's Managing Director, Mr Diego Gutierrez, said the management was delighted by the fact that the IPO will enable many 'wananchi' to own the company "The submission officially starts the process of listing Tigo shares on DSE," Mr Gutierrez said in a statement yesterday.
The Chairman of MIC Tanzania, Ambassador Ami Mpungwe, described the envisaged listing as a significant milestone for Tigo. "We will work together with all relevant regulatory bodies to ensure a smooth process towards the listing," he said.
Tigo's application was sent last Thursday - a day before Uhuru Day. Tigo, which controls 29 per cent of the market share, is the second largest mobile telephone firm after Vodacom, whose market share was estimated at 31 per cent as of June, this year.
According to Tanzania Communications Regulatory Authority (TCRA), the country tele-subscription stands at 39.2 million at the end of June. TCRA data show that Tigo was one of the three companies out of seven that recorded an increase in subscribers by June, this year.
On month-to-month statistics, the company's customers increased by almost six per cent to 5.5 million at the end of June. Tigo dominates text message market, with 52 per cent share against its immediate rival Vodacom, which controls 28 per cent, leaving 13 per cent for Airtel.
Also on mobile money business, Tigo commands 32 per cent through tigo-pesa while Vodacom's M-Pesa, leads the market with 43 per cent, with Airtel Money controlling 23 per cent.
According to the Act, all seven tele-firms are required to offload their 25 per cent stake to the public through IPO. Vodacom has already applied and the remaining five have formally made some enquiries to CMSA on how to head the law requirement.
