Tigo Tanzania initiated the process of listing on the Dar es Salaam Stock Exchange (DSE), as a deadline set by the government to do so approaches.
Tanzania’s eight operators are obliged by law to float 25 per cent of their shares to enable the government to enforce transparency measures it argues are necessary for tax purposes and so the country’s citizens get the chance to invest in the success of the mobile industry.
The deadline for operators to complete the listing is 31 December. Failure to comply could lead to fines or even the loss of operating licences.
Tigo submitted its prospectus and preliminary application to the Capital Markets and Securities Authority (CMSA) and the DSE, as required, The Citizen reported.
Last month, Vodacom Tanzania became the first operator to submit a draft prospectus for an initial public offering and now Tigo is the second.
Tigo is the top operator in the country with a 32 per cent market share, followed by Airtel (21 per cent) and Vodacom (18 per cent).
Telecommunications companies, through the Mobile Operators Association of Tanzania, initially opposed the move on the basis it was against the spirit of free enterprise.
It was reported last month that telcos were struggling to meet the year-end deadline. While both Vodacom and Tigo said they would comply, Airtel did not comment.