As part of the Homegrown Economic Reform, the Government of Ethiopia has implemented various strategic measures to ensure sustainable and inclusive national growth.
A key initiative within this reform was the establishment of the Ethiopian Capital Market, aimed at empowering citizens by granting them direct ownership stakes in state-owned enterprises.
Following the introduction of these policy and legal framework reforms, Ethio telecom which has diligently served Ethiopia and its people for 132 years successfully transitioned from a public enterprise into a Share Company, in accordance with the Commercial Code of Ethiopia and the directives of the Ethiopian Capital Market Authority.
Accordingly, it will be recalled that Ethio telecom publicly disclosed the successful sale of 10.7 million ordinary shares to 47,377 citizens across the country following the launch of the 10% ownership stake sale. Over the past few months, our company has been engaged in extensive tasks to provide shareholders with formal confirmation of their ownership. This process specifically involved a rigorous review of “Know Your Customer” (KYC) data and direct communication with shareholders to address any missing information.
Furthermore, the company has worked diligently to establish the necessary foundations for shareholders to participate in the Ethiopian Securities Exchange. This involved obtaining approval for the share allotment from the Capital Market Authority and registering the allotted shares with the Central Securities Depository (CSD).
In line with this, out of the 47,377 citizens who purchased shares, 45,366 (95.8%) have successfully completed the ownership verification and share digitization (Dematerialization) process. These verified shareholders represent 10.1 million shares with a total valuation of 3.04 Billion ETB. Consequently, we are delighted to announce today that Ethio telecom shareholders are now officially ready to commence trading and move their shares on the Ethiopian Securities Exchange (ESX).
Therefore, shareholders are entitled to buy, sell, or Transfer their shares in accordance with applicable laws. To conduct transactions on the stock market, shareholders must first approach any Licensed Investment Bank or Brokerage Firm (Brokers/Dealers) authorized by the Ethiopian Capital Market Authority to open a trading account.
It is further noted that for shareholders who have completed the digitization (Dematerialization) process, their ownership rights will be fully recognized and protected as of the start of the current budget year.
Our company will release the fiscal year performance summary and the financial audit report to its customers and shareholders. Furthermore, the first Annual General Meeting (AGM) will be convened in the upcoming budget year, during which the Dividend distribution amount and other strategic decisions will be finalized and disclosed to shareholders.
On the other hand, regarding the 1,646 shareholders whose verification is pending due to incomplete National ID information, our company issues a call to fulfill these requirements immediately, and data clearing and organizing tasks for these individuals will continue. Additionally, for the 248 foreign nationals (representing 105,000 shares) found ineligible under the current share purchase requirements, their payments will be verified and refunded.
Shareholders can monitor the overall trading process, daily market trends, and the status of their shares by visiting the Investor Relations Portal on the Ethio telecom official website at www.ethiotelecom.et. Additionally, shareholders seeking any inquiries or support may utilize our dedicated 128 Call Center or visit the Investor Relations Office at our Headquarters in person.
The sale of Ethio telecom’s ownership stake is a historic measure taken to strengthen the national capital market system and empower citizens as owners of wealth. The successful conclusion of this journey, enabling shareholders to buy, sell, or transfer shares on the secondary market, represents a historic milestone that opens the door for citizens to actively participate in the digital economy. We extend our gratitude to all stakeholders within the ecosystem for their support thus far and emphasize that a coordinated collective effort remains vital for the capital market system to achieve its intended national success.