Somtel launches initial public offering

Somtel launches initial public offering

Somaliland’s Somtel has begun its initial public offering (IPO), with interested parties able to acquire a minimum of 20 shares for US$100 apiece.

The operator largely serves the enterprise sector across Somalia as well as the autonomous regions of Puntland and Somaliland, offering fixed and mobile services. Additionally, it holds a stake in the DARE1 (Djibouti Africa Regional Express 1) cable system.

TeleGeography reports that in addition to the minimum amount of 20 shares, investors will have their purchases capped at 1000 shares.

Somtel is a subsidiary of the UAE-based Dahabshiil Group, whose CEO Abdirashid Duale said: “With this injection of capital, Somtel is well-positioned to take advantage of new opportunities in the telecoms sector in the Horn of Africa, enhancing the lives of millions of customers whilst enabling businesses to achieve their full potential in a new digital future. Somtel will also, of course, be generating many more jobs.”

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