ESX18 Nov 2024 08:35
"Heads of the Ethiopian Securities Exchange (ESX) eye the listing of more than 90 businesses on their boards as the country’s maiden stock market nears inauguration, sources disclosed to The Reporter.
If the ambitions hold true, the number of initial public offerings (IPOs) would instantly surpass the stocks listed on the Kenyan stock exchange, which the minds behind ESX have used as a reference point in the four years preparing for launch."
"The Exchange has managed to raise 1.6 billion birr in capital, far exceeding the initial target, and despite growing interest to invest in ESX, its executives have suspended reviews of new offers, according to the sources."
"Ethiopian Investment Holdings (EIH) holds a 25 percent stake in the Exchange on behalf of the federal government. State-owned firms Ethio telecom, Ethiopian Shipping and Logistics Services Enterprise (ESLSE), the Ethiopian Insurance Corporation (EIC), and Berhanena Selam Printing Enterprise combined hold another 25 percent stake."
"Financial institutions and SOEs are expected to be the first to list on the ESX when it goes live. Firms wishing to make a public offering are required to comply with transparent institutional governance requirements, International Financial Reporting Standards (IFRS), and safeguards meant to instill confidence in investors."
“There is a population of 120 million but the number of shareholders in the country is only around half a million. That is why we are relying on technologies like money market operators to maximize the reach and accessibility of the capital market,” she said.
She disclosed that both local and foreign investors will be permitted to invest in the capital market.
“We recognize retail investors as core investors in the capital market,” said Hana.
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