Safaricom’s share price soared 5.7% to a new all-time high on Monday, thanks to investor demand following news that the telco’s consortium had won the bid to operate in Ethiopia.
The telco’s share concluded Monday trading at Sh41.75, up from Sh39.5 the previous week Friday, bringing its valuation to Sh1.672 trillion, or 62.3 percent of the Nairobi Securities Exchange market capitalization.
Ethiopian government authorities announced Saturday morning that the Safaricom-led consortium, which also included Vodacom and Vodafone, had won with an offer of Sh91.8 billion ($850 million).
The announcement piqued investors’ curiosity, resulting in heightened activity, with the share reaching a high of Sh42 on intra-day trading.
The announcement in late April that a consortium led by Safaricom and another led by South Africa’s MTN Group were the only parties to place bids in the auction for two operating licenses had already sparked interest in Safaricom’s stock.
