The Ethiopian Securities Exchange (ESX) has announced it exceeded its initial capital raising target by more than double. The ESX sought to raise ETB 631 million (11.07 million dollars) but ended up obtaining ETB 1.51 billion (26.6 million dollars), representing 240 percent of the original target.
A total of 48 domestic and foreign institutional investors participated in the capital raise from financial and non-financial sectors. The ESX conducted roadshows in Addis Ababa, Nairobi and London to drum up interest from commercial investors.
"We are thrilled to have exceeded all our expectations in terms of the capital raise and are excited by the overwhelming confidence shown by investors in the long-term prospects of both ESX and Ethiopia's capital markets more broadly," said Tilahun Esmael Kassahun (Ph.D), CEO of the ESX.
Foreign strategic investors who participated include FSD Africa, the Trade and Development Bank Group and the Nigerian Exchange Group (NGX). Domestic private investors include 16 commercial banks and 12 private insurance companies. Public sector shareholders include Ethiopian Investment Holdings and subsidiaries.
Tilahun added that "strategic foreign investments by TDB, FSD Africa, and NGX Group are particularly important in allowing the transfer of technical knowhow and best practices as well as other areas of long-term strategic value that we will explore."