Ethio Telecom's IPO Sells 10.7% of Shares Amid Local-Only Rules

Ethiopia's state-owned Ethio Telecom sold only 10.7% of its shares in the country's first-ever initial public offering, raising approximately 3.2 billion Ethiopian Birr from 47,377 investors. The limited uptake is attributed to restrictive conditions, including a rule that only Ethiopian citizens could participate and a cap of 1 million Birr per investor, which discouraged both diaspora and larger investors. These constraints have drawn criticism for undermining the government's broader effort, led by Prime Minister Abiy Ahmed, to attract significant private investment and advance economic reforms. The outcome highlights the challenges Ethiopia faces in balancing domestic ownership with the need for foreign capital and in building local understanding of capital markets. The muted response underscores the hurdles in the government's partial privatization plans for Ethio Telecom and its ambitions for broader economic modernization. Decisions on the unsold shares remain pending as officials look to encourage greater public participation in future offerings.