The Ethiopian Securities Exchange (ESX) announced that it has raised 1.51 billion Birr capital, exceeding “expectations in terms of capital and confidence shown by investors in the long-term prospects of both the exchange and Ethiopia’s capital markets.”
ESX Chief Executive Officer Tilahun Esmael said this morning that the capital raised exceeded the target by 240 percent.
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According to him, the oversubscribed offering garnered participation from 48 investors across various sectors, both domestic and foreign.
Initiated in November 2023, the Ethiopian Securities Exchange undertook extensive capital-raising exercises meticulously orchestrated through road-shows in Addis Ababa, Nairobi, and London, it was learned.
The CEO noted that the enthusiastic response underscores the confidence and anticipation surrounding ESX’s pivotal role in advancing Ethiopia’s financial sector development and overall economic transformation.
The diverse investor base includes prominent foreign strategic investors such as FSD Africa, the Trade and Development Bank Group (TDB), and the Nigerian Exchange Group (NGX), alongside 16 domestic commercial banks, 12 insurance companies, and 17 other domestic investors, Tilahun revealed.
Public sector participation represented 25 percent share-holding, which included the Ethiopian Investment Holdings and its subsidiaries Ethio telecom, and the Commercial Bank of Ethiopia.
Expressing his delight at the overwhelming response, the CEO said, “We are thrilled to have exceeded all our expectations in terms of capital and excited by the overwhelming confidence shown by investors in the long-term prospects of both ESX and Ethiopia’s capital markets more broadly.”
In addition to the successful capital raise, he announced other milestones, including the release of its draft Exchange Rulebook for public consultation and the completion of the technical evaluation for selecting its technology provider.
These developments mark significant progress toward operationalizing the ESX trading activities.
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ESX also plans to implement issuer and investor education programs in the coming months, leading up to its official launch.
As Ethiopia’s first securities exchange, ESX aims to drive economic growth, promote financial inclusion, and generate wealth for all Ethiopians by providing a platform for companies to raise capital, facilitate investment opportunities, and uphold transparency and corporate governance standards.
