Tanzania rejects IPO applications from six operators

5 Oct 2017

Tanzania’s Capital Markets and Securities Authority (CMSA) has rejected applications from six telecoms companies seeking to list a portion of their shares on the Dar es Salaam Stock Exchange (DSE). The East African reports that Millicom Tanzania (Tigo), Airtel Tanzania, Viettel Tanzania (Halotel), Maxcom Africa, Tanzania Telecommunication Company Limited (TTCL) and Smart Telecom have all had their applications rejected twice for failing to fulfil certain listing requirements. Reasons for the lack of approval include shareholder disputes, lack of transparency, failure to provide full information and regulatory technicalities. ‘The companies submitted their applications for the first time, but we told them to go back and improve them. They came for the second time; we reviewed them and still found out that they were not in compliance with the law,’ said CMSA public relations manager, Charles Shirima.

As previously reported by TeleGeography’s CommsUpdate, in June 2016 an amendment to the Electronic and Postal Communications Act of 2010 made it a legal requirement for the country’s telecoms operators to float at least 25% of their shares on the DSE. Mobile market leader by subscribers Vodacom Tanzania launched its initial public offering (IPO) in March this year, although it was initially only open to local investors. Following further changes to legislation made in June, the government has now allowed foreign investors to purchase shares in those telecoms operators that are required to sell a portion of their stock, while also exempting small telecoms companies with Application Services Licences from listing.