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Ethio Telecom IPO Sells Just 10.7% of Shares, Raises 3.2 Billion Birr

Ethio Telecom IPO Falls Short of Expectations

What was billed as a fierce competition to buy shares of Ethiopia’s first-ever IPO ended in a surprise shortfall. Six months after launching its Initial Public Offering, Ethio Telecom sold just 10.7 million out of 100 million available shares—only 10.7% of the total.

Key Facts at a Glance

  • Offer Period: October 2024–February 2025 (extended by five weeks)
  • Shares Sold: 10.7 million of 100 million
  • Funds Raised: 3.2 billion birr
  • Investors: 47,377 individuals over 121 days
  • Price per Share: 300 birr
  • Minimum Purchase: 33 shares (9,900 birr)
  • Maximum Purchase: 3,333 shares (999,900 birr)

 Who Bought the Shares?

At a closing ceremony on April 25, Ethio Telecom CEO Frehiwot Tamiru revealed that all participants were individual investors, despite initial interest from banks and Ethiopians abroad.

“We imposed restrictions on purchase amounts,” she explained, “which limited participation.” All collected funds remain in a blocked account until decisions on unsold shares are finalized.

Why Didn’t More People Join In?

  1. Purchase Limits: Capped at 3,333 shares per investor.
  2. Blocked Funds: Investors could not access or reallocate their invested birr.
  3. Awareness Gap: Many Ethiopians are still unfamiliar with capital markets.

CEO Frehiwot Tamiru stressed the need for better public education on investing to boost turnout for future offerings.

What’s Next for Ethiopia’s Stock Market?

Ethio Telecom is one of five state-owned enterprises set to list on the Ethiopian Securities Exchange, launched in January 2025. Wegagen Bank already led the way by listing 6.2 million shares earlier this year. The exchange plans to list up to 50 companies within five years, aiming to deepen Ethiopia’s financial markets.

The Road to Partial Privatization

Ethiopia first proposed selling a 40% stake in Ethio Telecom in June 2021, but economic challenges stalled the plan in March 2022. After reviving the process later that year, global telecom giants like Emirates Telecommunications Group and France’s Orange showed interest but ultimately withdrew.

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