Somtel, the telecom and technology service provider with a wide network coverage in the Somali region, has set the issue price of the shares at its initial public offering (IPO) at $100 per share. The network has different networks in different Somali regions.
Somtel has a long track record of providing high quality and reliable telecommunication services by investing in a 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. The Somtel network is the founder, along with Djibouti Telecom, of the DARE1 cable that starts in Djibouti, down the Somali coast, ending up in Mombasa, with stations along the way. This will enhance digital connectivity in the region.
Somtel’s IPO was launched by the President of Somaliland HE. Muse Bihi Abdi. He said “”We are here today to congratulate and encourage one of Africas most influential companies. We congratulate Dahabshiil Group and Somtel … for being a financial and technological leader on the Horn of Africa banking and telecoms sectors.” I’m sure this IPO offering will further propel Somtel’s growth as well as serving as an example for other companies in the region, the President added.
Speaking at the launch ceremony, a unique occasion in the region, Hajji Mohamed Said Duale, the Chairman of Dahabshiil Group which founded the Somtel network said, “We are pleased with the high demand for our shares – evidence that investors are as excited about Somtel’s future as we are.”
Abdirashid Duale, Dahabshiil Group CEO, added, “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.”
There has been an enthusiastic response from the population, both locally, regionally and in the diaspora. There was similar enthusiasm at Somtel IPO events which have already been held in Mogadishu and Puntland where Somtel also has a significant presence.
Attending the launch, Somaliland’s Minister for Information Communication & Technology, Dr Abdiweli Soufi, highlighted Somtel’s leading role in innovating in the region. Adding, “Somtel is once again leading the charge to innovate with this IPO.” This recognition for innovation was also echoed by the Chairman of the Somaliland Chamber of Commerce, Jamal Aydiid by stating, “Somtel’s focus on innovation in Somaliland and the wider HoA region has become a catalyst and an inspiration for many other startups”
This capital raise means Somtel is now a truly regional player and a considerable step ahead of its competitors. Furthermore, with the growth potential in the market and the company’s focus on operational efficiency, simplification, and delivering value for its customers, management is optimistic about being able to deliver significant returns for its shareholders.
For further information please contact: www.somtelnetwork.net and www.somtelsomalilandshares.com The prospectus for the IPO will also be available on this address.