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ADDIS ABABA (May 26, 2026) — Ethio telecom officially listed on the Ethiopian Securities Exchange (ESX) today during a press briefing at the Skylight Hotel, providing the country’s young capital market with its first major public test. The listing places the flagship state-owned telecom operator on the secondary market following a landmark initial public offering (IPO) that drew tens of thousands of first-time retail investors but fell far short of its initial capital-raising ambitions.
The entry marks a critical shift for Ethio telecom from a closed state enterprise to a share company with public disclosure obligations and a market-facing corporate governance structure. For the ESX, which has previously been dominated by financial institutions like Awash Bank, Wegagen Bank, and Gadaa Bank, the listing brings much-needed sector diversification and a widely recognized brand to build market depth.
The Numbers: Ambition vs. Market Reality
The partial privatization offered a 10% stake in the company to Ethiopian retail investors. While the participation of tens of thousands of citizens is a milestone for public ownership, the financial results highlight the early challenges of mobilizing domestic savings at scale in an economy unfamiliar with equity markets.
IPO Performance Summary
| Metric | Target / Offered | Actual Result | Focus / Status |
|---|---|---|---|
| Shares Offered | 100 million shares | 10.7 million shares | 89.3 million shares unsold |
| Capital Targeted | 30 billion Br | 3.2 billion Br | ~10.7% of financial target achieved |
| Participating Investors | — | 47,377 retail buyers | Minimum 33 shares; Maximum 3,333 shares |
| Share Par Value | — | 310 Br | Set during initial valuation |
Verification Hurdles and Technical Onboarding
Moving from share purchase to active trading has proved to be a lengthy process, taking nearly a year of restructuring and verification. Chief Executive Officer Frehiwot Tamiru confirmed that 96% of the retail investors—representing roughly 45,000 shareholders—have been successfully verified for trading. Approximately 10.1 million shares (valued at 3 billion Br) have been dematerialized into electronic form.
However, operational friction remains:
- KYC Deficiencies: A total of 1,646 shareholders failed to complete basic Know Your Customer and Account (KYCA) requirements, largely driven by delays or issues related to Fayda national identification registration.
- Citizenship Exclusions: Another 248 non-Ethiopian individuals attempted to purchase shares but were rejected due to legal restrictions limiting ownership to citizens.
“For people who can provide a national ID, we’ll approve the shares,” Frehiwot stated. “For those who don’t, we’ll return the money, including the service charge.”
Dividend Dispute Overshadows Listing
The transition to the secondary market has brought a legal and financial dispute into sharp focus. Despite Ethio telecom posting a record 162 billion Br in revenue for the fiscal year ending July 2025, newly onboarded private shareholders did not receive any share of the declared 12 billion Br dividend. Instead, the entire payout was distributed exclusively to the federal government.
This decision has drawn sharp criticism from domestic finance experts and shareholders alike. Critics argue that delaying the legal recognition of IPO buyers conflicts with the Commercial Code’s three-month shareholder recognition provision and threatens to weaken public confidence in the enforceability of retail investor rights.
In response, Frehiwot disclosed that formal dividend allocations for private shareholders will officially begin in the 2025/26 fiscal year, following the completion of legal ownership approvals this year. Audited financial statements and further investor documentation will be published on the company’s website ahead of its first annual general meeting in September.
