Dar es Salaam. Vodacom Tanzania shareholders have continued to sell their shares at a loss, less than two years since the company was listed at the Dar es Salaam Stock Exchange (DSE).
A market report has shown that the company’s share was sold at a price of between Sh690 and Sh740 since the start of the year.
This is lower than the Initial Public Offer (IPO) price of Sh850 and a listing price of Sh900 per share.
The market report has shown that since the start of the year, the company’s shareholders have sold shares valued at Sh350 million at a loss of between Sh120 and Sh160 per share.
However, the market report shows that the company share value has remained Sh800, which is Sh50 lower than the IPO price.
Analysts say some of the investors have decided to sell their shares, fearing further depreciation.
“Since the company’s share price has dipped beyond the IPO price, some investors who wanted quick gains fear that the stock might continue to fall,” said an analyst who wanted to remain anonymous.
The DSE report shows that a total of 1.3 million Vodacom shares were on the counter for sale on Tuesday, but the shortage of liquidity caused some to remain unsold.
This makes Vodacom the leading among listed company to float a huge number of shares, ahead of CRDB Bank that had 600,000 shares on offer on Tuesday and TCIL which had nearly 250,000 shares on offer.
At the Annual General Meeting held in October 2018, the shareholders of Vodacom Tanzania Public Limited Company (the Company) approved a gross final dividend of Sh17.33 per share, up 36.0 per cent year-on-year from Sh12 recorded in 2017.