Ethio Telecom traded on the Ethiopian Securities Exchange for the first time on May 26, becoming the first state enterprise and the first non-financial company to list on the Addis Ababa bourse under the ticker TELE.
The debut closes a two-year transformation that began in June 2024, when the company converted from a closed government monopoly into a public share company.
A Milestone for the Exchange, Not Just the Company
The listing also marks a significant moment for the ESX itself. The exchange launched in January 2025 and now carries four listed equities, following earlier introductions by Wegagen Bank, Gadaa Bank, and Awash Bank. Ethio Telecom is the only company among them to have gone through a public offering rather than a direct introduction, making it the bourse’s most visible test of retail investor appetite.
“The listing of Ethio Telecom sets an important precedent for transparency, public participation, and long-term value creation,” said ESX CEO Tilahun Esmael Kassahun, describing the debut as a demonstration of the government’s commitment to opening state-owned assets to the public.
The IPO Fell Well Short of Its Target
The state offered 100 million shares at 300 birr each, targeting 30 billion birr in proceeds. It sold 10.7 million shares, raising 3.2 billion birr — roughly 11% of the original goal. The shortfall points to the limits of retail investor confidence in a nascent market, regardless of the company’s underlying size.
Of 47,377 investors who participated in the IPO, 45,000 cleared verification and can now trade approximately 10.1 million shares. A further 1,646 remain on hold due to missing national ID numbers, while 248 non-citizen applicants will receive full refunds.
Ethio Telecom CEO Frehiwot Tamiru said the company took time to audit incomplete shareholder data before the listing, citing the need to protect market integrity.
The Financials Tell a Different Story
In the fiscal year ended June 2025, Ethio Telecom posted revenue of 162 billion birr, up 72.9% year on year, with EBITDA of 76 billion birr exceeding its own target by 4%. The momentum carried into the following period: in the first half of FY2025/26, revenue rose a further 37% to 85.02 billion birr, net profit reached 42.36 billion birr, and the gross profit margin held at 49.8%. The company serves 87.1 million subscribers.
Safaricom Ethiopia Grows Fast From a Much Smaller Base
The contrast with Safaricom Ethiopia sharpens the picture. Safaricom Ethiopia grew service revenue by 86.6% to KES 14.1 billion (approximately US$109 million) in the year ended March 2026, a strong rate of growth that still amounts to a fraction of Ethio Telecom’s scale. Its subscriber base stood at 13.6 million, with network coverage reaching 60% of the population across 3,504 sites.
Safaricom’s entry into Ethiopia in 2022 ended eight decades of monopoly and forced Ethio Telecom to cut mobile data tariffs by 70% while accelerating its 4G and 5G rollout. The incumbent responded. That response now sits on a public exchange.
More Listings in the Pipeline
For the ESX, Ethio Telecom’s arrival brings the bourse its most recognisable brand. Dashen Bank and Bank of Abyssinia have completed regulatory registration and stand next in the queue, while Abay Bank, Anbesa Bank, and Amhara Bank are at advanced stages of preparation. The exchange is targeting nine listings before the Ethiopian fiscal year closes on July 7, 2026.
Ethio Telecom will publish audited financials ahead of its first annual general meeting in September. Dividend allocations for private shareholders are scheduled to begin in FY2025/26, giving the 45,000 verified investors their first tangible return on a bet placed in a market that barely existed eighteen months ago.
