Somalland President Muse Bihi (third left-centre) together with Dahabshiil Group Chairman Hajji Mohamed Said Duale (second left)
Telecom and technology service provider in the Somali, Somtel, on Wednesday, broke new ground by offering its shares to public investors through stock issuance.
Somtel announced its Initial Public Offering (IPO) creating an opportunity for investors to purchase shares through the company as it seeks a greater ability to grow and expand in the Horn of Africa, as well as creating more jobs.
The company has set the issue price of the shares at its IPO at $100 per share.
Somtel, which was founded by Dahabshiil offers internet and digital services in the Horn of Africa.
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It recently spread its reach beyond the Somali regions by partnering with Djibouti Telecom to install the DARE 1 cable which will boost connectivity and data access in the region, with eventual gains being realised for the end consumer. The cable starts in Djibouti and runs down the Somali coast, ending up in the Kenyan port Mombasa with stations along the way to enhance digital connectivity in the region.
The IPO launch in Hargeisa was attended by the Somaliland President Muse Bihi Abdi, the Minister for Information Communication and Technology, Dr Abdiweli Soufi and the Chairman of the Chamber of Commerce, Jamal Aydiid.
President Bihi said the company is opening the region for new investors.
“I am sure this IPO offering will further propel Somtel’s growth and serve as an example for other companies in the region to look beyond private ownership of their companies and invite investors and enable them to fully realise the gains from their investments,” Bihi said.
"I am inviting the public to come and be part of the growth of this company that has not only played a part in the development of this region but has created job opportunities for our youth and others,” said Hajji Mohamed Duale, the chairman of the Dahabshiil Group.
Abdirashid Duale, the Dahabshiil Group CEO, said the launch of the IPO was historic.
"The IPO marks another landmark for our company. With its ever-growing portfolio of ground-breaking services, and with this injection of capital, Somtel is well-positioned to take advantage of new opportunities in the telecoms sector in the Horn of Africa, enhancing the lives of millions of customers whilst enabling businesses to achieve their full potential in a new digital future. Somtel will also, of course, be generating many more jobs."
