By Sylvia Juuko

CELTEL Africa plans to sell over 20 billion shares in an Initial Public Offer (IPO) in Lusaka, Zambia. David Venn, the Celtel Zambia managing director, said the share sale follows a directive from Celtel International to launch the IPO to international and local investors.

He told the media that Celtel Zambia would be the first to launch its IPO, while Celtel networks in other African countries were still working on regulatory requirements.

“In Celtel Zambia, Celtel International has provided an offer for the sale of over one billion shares, representing a 20% share capital in Celtel Zambia,” Venn said in a statement.

Celtel International is a pan-African mobile network with a presence in 15 African countries. The countries are Uganda, Madagascar, Chad, Burkina Faso and DR Congo. It has more than 400 million subscribers.

Dora Siliya, Zambia’s minister of communications and transport, said the move to sell shares was a good response to the growth of information and communication technologies.

He pledged government’s commitment to provision of a favourable environment that would enable mobile companies expand their footprint to rural areas.

Celtel’s offer amount is twice what that of the Kenyan telecommunications firm Safaricom offered last month.