Ethio Telecom has officially commenced the sale of 10% of its shares, with the goal of raising 30 billion birr or $250 million.
The company, which boasts a total valuation of 100 billion birr, has made 100 million shares available for purchase.
Each share is priced at 300 birr, with a minimum purchase requirement of 33 shares per individual, amounting to 9,900 birr. In total, 100,000,000 shares are available for purchase, and the sale is expected to generate 100 million birr.
The offer is open exclusively to Ethiopian citizens, with institutions being prohibited from buying shares. The share sale will run from October 16, 2024, until January 3, 2025.
This marks a significant milestone for Ethio Telecom, which has been fully government-owned for the past 130 years.
The decision to sell 10% of its shares represents a key step toward privatization. During an official forum, Prime Minister Abiy Ahmed launched the share sale and encouraged Ethiopians to become shareholders.
The Prime Minister also announced the official start of Ethiopia’s stock market, with Ethio Telecom being the first company to participate. Other state-owned enterprises, such as Sky Light Hotel, are expected to follow suit and join the stock market in the near future.
Ethio Telecom’s CEO, Firehiwot Tamiru, emphasized that shares can be easily purchased through the Telebirr app, enhancing accessibility for citizens wishing to invest.
Ethio Telecom achieved notable financial success in the 2023/24 fiscal year, with total revenue of 93.7 billion birr and a net income of 22 billion birr.
The company serves 78.3 million customers and has set an ambitious target to increase its revenue to 160 billion birr in the current fiscal year.
In addition, Ethio Telecom generated $198 million in foreign currency revenue and paid 30 billion birr in taxes to the government.
The company’s global standing is also impressive, ranking 17th out of 778 telecom operators worldwide and 2nd among 195 telecom operators in Africa.
Telebirr, the company’s mobile payment platform, has seen rapid growth, with 47.55 million users and transaction volumes exceeding 2.5 trillion birr.
Ethio Telecom had initially aimed to generate 90.5 billion birr from its telecom services but exceeded this target by earning 94 billion birr.
Despite these achievements, the company faces challenges such as the rising cost of living, security concerns, and foreign currency shortages.
Additionally, it was noted that 42% of Ethio Telecom’s 78 million customers currently own a smartphone, reflecting both an opportunity and a limitation for the company in expanding its digital services.
