Safaricom Shares Gain 1.4%, Hit all-time High on Ethiopia Bid

Shareholders of Safaricom Plc, Kenya’s largest telco, have approved a proposal to create an operating company in Ethiopia.

Safaricom CEO, Peter Ndegwa during Safaricom @20 launch at Serena hotel.

Shares of Safaricom Plc advanced nearly 1.4 per cent to hit a record high of Ksh 39.90 on the Nairobi Securities Exchange on Wednesday after the company made its bid for one of the operating licence in Ethiopia. 

At the close of business, 11 million shares worth KSh 441.7 million changed hands at a price of between KSh39 and an all-time high of KSh40.2, bringing the average for the day to KSh39.9.

“SCOM began the year with a share price of Ksh 34.25 and has since gained 16.5 per cent on that price valuation, ranking it 5th on the NSE in terms of year-to-date performance. Shareholders will be pleasantly optimistic about SCOM knowing that the stock has accrued 6.12% over the past four-week period alone,” according to a report by African Stock (Securities) Exchanges.

The Ethiopian Communications Authority (ECA)  confirmed that a consortium led by Safaricom and another one by South Africa’s MTN Group were the only parties to make bids in the auction for two operating licences which closed on Monday.