Ethiopian Investment Holdings (EIH) executives have identified ten state-owned enterprises (SOEs) for the launch of ESX. Tilahun Kassahun, CEO of the Ethiopian Securities Exchange (ESX), shared the details. Companies like Ethio Telecom, the Ethiopian Insurance Corporation, the Ethiopian Shipping and Logistics Services Enterprise (ESLSE), and Berhanena Selam Printing Enterprise will be among the first to list.
Moreover, Tilahun Kassahun, CEO of the Ethiopian Securities Exchange (ESX), said that “we are concluding assessments on each company. This includes their financial capacity and their compliance with the way ESX is set to operate. Some will be wholly offered to the public, some partially, and others might be listed for a minimal amount of shares.”
Kassahun confirmed the public will have 10% of Ethio Telecom’s shares. Not all selected SOEs will be available at the time of ESX launch. Ethio Telecom and the Ethiopian Insurance Corporation (EIC) are expected to lead listings. The EIC has completed a feasibility study to confirm its readiness.
Nestanet Lemessa, CEO of EIC, stated, “We are one of the companies selected to enter the capital market. The Corporation will issue bonds and register as an investor.” EIH holds a 25% stake in the ESX.
The exchange plans to launch after raising 1.5 billion birr. 48 investors, including 16 commercial banks and 12 insurance firms, participated. Three foreign investors acquired stakes including Trade and Development Bank (TDB), FSD Africa, and Nigeria Exchange Group (NGX). Kassahun expressed satisfaction with surpassing the initial target of 631 million birr.
At least 50 companies are expected to list. 16 domestic private commercial banks, 12 private insurance companies, and 17 other private domestic investors participated.
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