VODACOM IPO, the biggest initial public offer in history that was launched last week, has drawn strong investors interest on prospects of attractive dividend yields.
Brokers have it that the trend demonstrated by buyers in the first two days of the IPO was new in the market since many came to buy straight instead of asking and decide later.
Vodacom 476bn/- went on sale last Thursday at 850/- a share The telephone market leader offers 560million through IPO. ZanSecurities Chief Executive Officer Raphael Masumbuko said unlike other IPOs many showed up in the first two days and most were fresh stock buyers.
“Some buyers deposited money in our account a day before the IPO was opened… and many came to buy straight. “The IPO sells by itself since Vodacom brand is a household name,” Mr Masumbuko told 'Daily News' in the weekend. “Buyers don’t flick their eyes because of price.
They want to buy…and most of the buyers are fresh investors,” the CEO said. “Infact this is the first IPO I received so many buyers in the first two days….it is exceptional,” Mr Masumbuko said. Orbit Securities Managing Director Juventus Simon said they have received inquiries for IPO across the country from Kigoma, Mwanza, Arusha and Mbeya.
“Some are first share buyers who do not know even the procedures, we need to continue sensitise the market,” Mr Simon, who his firm is sponsoring broker for Vodacom IPO, said. Some brokers said some of the new shared buyers wanted to pay and have their share outright similarly to shoppers at groceries and supermarkets.
Tanzania Securities CEO Joaqium Bonaventure said the reaction is good in the first two days. Vodacom controls 31 market shares followed by Tigo 29 per cent, Airtel 26 per cent, Halotel (8.0 per cent).
Though telecoms are competing vigorously, analysis shows that the room to grow is huge with tele-subscribers expected to reach 52 million by 2020, reaching a penetration of 83 per cent. The current mobile subscription is around 40million.