Tanzanian cellco Millicom Tanzania (Tigo) has made an application to the Capital Markets and Securities Authority (CMSA) to sell shares in an initial public offering (IPO), reports Reuters. Tigo becomes the second company in the country to file an IPO prospectus with the CMSA, after Vodacom Group subsidiary, Vodacom Tanzania submitted an application to list its shares on the Dar es Salaam Stock Exchange (DSE) at the end of last month. Ami Mpungwe, chairman of Tigo said: ‘Today’s submission is a significant milestone … and it is in keeping with our desire to provide our fellow Tanzanians an equal opportunity to enter into the capital of Tigo in the near future.’
The government has made it a legal requirement for the country’s telecommunications operators to be 25% locally owned by 31 December 2016, and unlike the two leading players, third-largest mobile operator by subscribers, Airtel Tanzania, has yet to file for an IPO. Critics of the government’s deadline believe that rushing through several IPOs in such a short time period could result in many shares left unsold, as only Tanzanians are permitted to buy them.