HOW SA COMPANY BOUGHT 40PC SHARES IN VODACOM IPO "Credit News 24"
South Africa’s Public Investment Corporation (PIC), with about $100 billion in assets, now owns a 10 per cent stake in Vodacom Tanzania.
Dar es Salaam. The South Africa’s Public Investment Corporation (PIC) is the foreign investor that bought 40 per cent of the shares that were issued for the Vodacom Initial Public Offering (IPO) after foreigners were allowed to participate.
The firm came in as Vodacom was struggling to find buyers for all the 560 million shares issued in the IPO, necessitating the extension of the IPO in two occasions.
The South African government-owned investment company now owns 10 per cent of Vodacom Tanzania after buying 224 million shares worth over Sh190 billion.
Foreigners were allowed to participate in the IPO when it was extended for the second time on July 1, after local buyers failed to take up all the shares on offer and after the law was amended.
Over 41,000 Tanzanian investors – both retail and institutions - bought 60 per cent of the company’s 560 million shares offered and the remaining 40 per cent were all taken by PIC after the offer was extended the second time.
PIC is one of the largest investors in South African equities, with investments contributing towards approximately 12.5 per cent of the market capitalisation of Johannesburg Stock Exchange (JSE) Limited, according to information on its website. The 106 years old public investment firm has over $100 billion in assets.
Sources from the industry inform that the institution was interested in buying shares when the government announced to allow foreigners but later it decided to be the IPO underwriter.
Underwriter is an investment bank or institution that guarantees to purchase all unsubscribed shares after the IPO closes, at a fee.
The Citizen
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