Somtel telecom and technology service provider has broken 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 for 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 and is a leading telecom and internet and digital services provider in the Horn of Africa has a long track record of providing high quality and reliable telecommunication services by investing in superior communication infrastructure and harnessing the capabilities of the Somali people.
The company now offers voice, data and digital services to retail customers as well as enterprise solutions to corporate and public sector customers.
Somtel 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 with the aim of enhancing 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, Abdiweli Soufi and the Chairman of the Chamber of Commerce, Jamal Aydiid.
President Bihi in his remarks said the company is opening the region for new investors.
“We are here today to congratulate and encourage one of Africa’s most influential companies. We congratulate the Dahabshiil Group and Somtel in particular for being a financial and technological leader in the Horn of Africa banking and telecoms sectors,” he said.
Bihi said the 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.
Hajji Mohamed Said Duale, the chairman of the Dahabshiil Group, invited the public to participate in the IPO and be part of the growth of the company which he founded.
"We are pleased with the high demand for our shares - evidence that investors are as excited about Somtel’s future as we are. 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,” he said.
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," he said.
The communications minister Soufi said Somtel has proved to be leading the charge in the region with the launch of the IPO.
Chamber of Commerce chairman Aydid, said the company’s focus on innovation in the region has become a catalyst and an inspiration for many other businesses.
The Somtel IPO has already attracted great interest from other Somali regions including in Mogadishu and Puntland where similar IPOs have already been offered and the network enjoys wide coverage.
This share offer has enhanced Somtel’s position as a regional player placing it a step ahead of its competitors.