Strong Start for Ethio Telecom’s Historic IPO Signals Growing Public Interest in Capital Markets
Addis Business Review: Six months after launching Ethiopia’s first-ever Initial Public Offering (IPO), Ethio telecom has proudly announced the successful sale of 10.7 million ordinary shares—an important first step in introducing the nation’s public to equity investment and ownership in a major state-owned enterprise.
Originally scheduled to run from October to January and extended by five weeks due to strong ongoing interest, the share offering concluded in February with a total of 47,377 investors participating across 121 offer days. These investors purchased shares worth an impressive 3.2 billion birr—a strong show of trust and belief in the future of Ethio telecom.
Speaking at a celebratory event held at Skylight Hotel, CEO Frehiwot Tamiru highlighted the diverse interest the IPO generated, not only from individuals but also from banks and members of the Ethiopian diaspora. While this round saw participation from individual investors exclusively, Frehiwot emphasized that “decisions on the remaining shares are ongoing,” pointing to continued momentum.
She also noted that investor eligibility criteria—such as the minimum requirement of 33 shares and a maximum of 3,333 shares—were important guardrails to ensure fairness and inclusivity. Funds raised will be securely held in a blocked account as part of a transparent and structured process.
This IPO marks a major milestone for both Ethio telecom and the country’s newly established Ethiopian Securities Exchange, which began operations in January. While Ethio telecom is one of five state-owned enterprises preparing to list shares, Wegagen Bank made headlines by becoming the first company listed on the new exchange. Plans are underway to list up to 50 companies in the next five years—a transformative step for Ethiopia’s economy.
Frehiwot acknowledged that public education and awareness are key to deepening future participation in capital markets. “This experience has shown the strong potential for growth in public investment,” she said, expressing optimism about future rounds and broader engagement.
Ethio telecom’s partial privatization is part of Ethiopia’s larger economic reform agenda led by Ethiopian Investment Holdings, the sovereign wealth fund overseeing 40 state-owned enterprises. While global market dynamics have influenced the timeline for full privatization, Ethio telecom remains a central figure in the country’s strategic growth and innovation efforts.
As the IPO journey continues, Ethio telecom’s bold step forward is laying the foundation for a vibrant, inclusive, and transparent capital market in Ethiopia.
Intial story via: Shega.co
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