Vodacom investors sell shares at loss, market reports show
Vodacom is the second largest company listed on the Dar bourse. PHOTO|FILE
What you need to know:
- Some individual shareholders with Vodacom Tanzania Plc have started to sell their shares at a loss of Sh100, as few seeking to exit, after their expectations have failed to be realised. Many expected that the share price would rise in a short period.
Dar es Salaam. Some of the Vodacom shareholders are currently selling their shares at Sh750, which is a loss of Sh100 compared with an initial public offering (IPO).
This is also a loss of Sh150 compared with the listing price of Sh900 per share recorded in August last year, when the company started trading its equities on secondary market.
DSE market reports show that the company’s share price of Sh750 was set on November 6.
The reports show that the company market capitalisation shrank to Sh1.7 trillion on Monday this week from Sh2.1 trillion recorded during the listing day.
It is currently the fifth largest-listed companies.
It is the second largest company among locally-listed firms, behind Tanzania Breweries Limited (TBL), which has the Sh3.8 trillion capitalisation.
Analysts are optimistic that the company share price is still stable and this is influenced by higher supply of shares than the real demand.
However, sources at the market say many shareholders, mainly institutional, are still holding their Vodacom shares and the current selling is mainly conducted with individuals with little number of shares as they are seeking an exit.
“Some shareholders bought the company shares believing that the price would appreciate within short period of time and this has never happened as almost six months passed but the price has slightly gone down,” said an analyst who preferred to remain anonymity.
Vodacom is also among the recent DSE market stimulants after managing to hook up more than 40,000 new investors, which is ten per cent of the overall market investors.
