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Ethiopia is on track to launch the country’s first stock market since the 1970s by the middle of November, says Hana Tehelku, the new head of the Ethiopian Capital Market Authority (ECMA). Heads of the Ethiopian Securities Exchange (ESX) eye the listing of more than 90 businesses on their boards as the country’s maiden stock market nears its inauguration.
Analysts say that the number of initial public offerings (IPOs) would instantly surpass the stocks listed on the Kenyan stock exchange. The Exchange has raised 1.6 billion birr in capital, far exceeding the initial target. Experts feel that the subscription capital collected so far is adequate. –
Ethiopian Investment Holdings (EIH) holds a 25 per cent stake in the Exchange on behalf of the federal government. State-owned firms Ethio Telecom, Ethiopian Shipping and Logistics Services Enterprise (ESLSE), the Ethiopian Insurance Corporation (EIC), and Berhanena Selam Printing Enterprise combined hold another 25 per cent stake.
Financial institutions and SOEs are expected to be the first to list on the ESX when it goes live. Firms wishing to make a public offering are required to comply with transparent institutional governance requirements, International Financial Reporting Standards (IFRS), and safeguards meant to instil confidence in investors.
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EIH has confirmed that a 10 per cent stake in Ethio Telecom and an unspecified stake in EIC will be listed on the Exchange. Other SOEs are being evaluated and considered for listing, sources say.
