Ethio Telecom has briefed regarding its recent public share sale, revealing that the 3.2 billion birr raised from the process remains secured in a closed account and has not yet been utilized for any operational or investment purposes.
In a press briefing held earlier today, CEO Frehiwot Tamiru addressed the status of the company’s transition into a joint stock company and the outcome of its first-ever public offering of shares. The telecommunications giant, previously fully owned by the government, offered 10 percent of its shares—equivalent to 100 million ordinary shares at a unit price of 300 birr—in a sale that commenced on October 9, 2024.
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According to the CEO, the offering was conducted in two rounds and lasted a total of 121 days, concluding on February 15, 2025. In total, 47,377 Ethiopian investors participated in the offering, purchasing 10.7 million shares with a combined value of 3.2 billion birr. Of these, 43,848 shareholders participated in the first round and 3,529 in the second.
Frehiwot emphasized that the decision to lower the share price was made intentionally to ensure that lower-income citizens could participate in the investment opportunity. The minimum number of shares per investor was set at 33 (9,900 birr), while the maximum allowed was 3333 shares (99,900 birr).
Despite initial delays in announcing the results, the company affirmed that it has submitted the final report on the share sale to the Ethiopian Capital Market Authority. Ethio Telecom is currently in the process of contacting shareholders and collecting required documents to confirm ownership, after which shareholder information will be verified by the Capital Market Authority in preparation for potential trading on the upcoming Ethiopian stock exchange.
Regarding the unused funds, CEO Frehiwot stated:
“The 3.2 billion birr raised from the share sale has been kept in a closed account without being used for any purpose.”
She added that further steps in the share sale process will be handled with full consideration of shareholder rights and legal requirements. Ethio Telecom also confirmed that both domestic banks and members of the Ethiopian diaspora have submitted requests to participate in future rounds of the share sale.
“After reviewing the challenges faced in the first phase and holding consultations with the government, we will announce when the remaining shares will be made available for sale to individuals, institutions, and Ethiopians of origin,” the CEO said.
As one of the largest state-owned enterprises in the country, Ethio Telecom’s move toward partial privatization and its intention to enter the capital market marks a significant development in Ethiopia’s broader economic reform and market liberalization efforts.
Source: Tikvah Ethiopia
