The executives of Ethio telecom have anounced a five-week extension of the deadline for the public offering of a 10 percent stake in the state-owned telecommunications giant. The offer will run until February 14, 2025.
Ethio telecom began offering equity in October 2024, putting 100 million ordinary shares up for sale at a par value of 300 birr. Prospective investors must buy a minimum of 33 shares, while the ceiling is set at 3,333 shares valued at nearly one million birr. Buyers are subject to a 1.5 percent service fee and 15 percent value-added tax (VAT).
The shares are being sold on Telebirr, Ethio-telecom’s mobile money platform.
The company’s ambitious public offering sparked skepticism among experts, who questioned whether the state-owned telecom operator could achieve its target before the original January 3 deadline, despite the option for early closure if shares are fully purchased.
The doubts appear to have been justified, as the operator has pushed the deadline back by five weeks.
The prospectus published by Ethio telecom as part of its initial public offering contained what experts characterized as dubious and unreliable information. They
The figures included in the prospectus were taken largely from a re-evaluation of Ethio telecom’s finances conducted by consulting giant Deloitte over the last year.
Among other things, the evaluation places the value of Ethio telecom’s property, plant, and equipment assets at close to 130 billion birr in June 2024, up from the 51 billion birr value stated in the company’s audited financial statements the year prior.
Ethio telecom’s representatives have not responded to The Reporter’s inquiries about the offering.
