The executives of Ethiopian Investment Holdings (EIH) have designated 10 of the state-owned enterprises under the wealth fund’s wings for listing on the upcoming stock market.
Tilahun Kassahun, CEO of the Ethiopian Securities Exchange (ESX), told The Reporter that Ethio telecom, the Ethiopian Insurance Corporation, the Ethiopian Shipping and Logistics Services Enterprise (ESLSE), and Berhanena Selam Printing Enterprise will be among the first up for listing on the market.
“We are concluding assessments on each company. This includes their financial capacity and their compliance with the way ESX is set to operate,” he said. “Some will be wholly offered to the public, some partially, and others might be listed for a minimal amount of shares.”
He confirmed plans to list 10 percent of shares in Ethio telecom to the public.
Kassahun disclosed that not all of the designated SOEs will be up for sale when ESX launches in the coming months.
“There are some corrective measures some of these public companies need to make, but we are sure at least two will make it by the official launch,” he said.
Ethio telecom and the Ethiopian Insurance Corporation (EIC) are expected to be among the first to be listed on the country’s maiden stock exchange.
EIC, one of 27 enterprises under EIH, has undergone a rigorous feasibility study to determine its eligibility for listing.
“We are one of the companies selected to enter the capital market,” Nestanet Lemessa, chief executive of EIC told The Reporter. “The Corporation will not just be issuing bonds but it will also register as an investor.”
EIH holds a 25 percent stake in ESX through its subsidiaries.
The Exchange will debut after raising more than 1.5 billion birr from 48 investors, including 16 of the country’s commercial banks and 12 insurers. Three foreign investors – the Trade and Development Bank (TDB), FSD Africa, and the Nigeria Exchange Group (NGX) – have also acquired stakes in the upcoming capital market.
“We have exceeded expectations,” Kassahun said, referring to the initial capital raising goal of 631 million birr.
Industry insiders told The Reporter that at least 50 companies, including banks, insurance firms and SOEs are expected to list on the Exchange once it launches in October. No less than 16 domestic private commercial banks, 12 private insurance companies, as well as 17 other private domestic investors have invested in ESX, so far.
