Onatel IPO Highlights Growth Opportunities

The International Finance Corporation (IFC) is planning to become the latest shareholder in the incumbent telecoms operator of Burkina Faso, after an initial public offering (IPO) on the company, the first for any Burkinabé company, was launched at the end of December 2008. The IFC has said that it would buy any shares not subscribed to when the IPO closes on January 31 2009, up to a 5% stake, or if all shares were sold, the government would free a further 3% stake for the IFC to buy. As well as pledging to purchase shares in Onatel, the IFC had promised a EUR7.5mn (US$10mn) loan to upgrade the company's fixed and mobile networks, which CFW believes is badly needed.

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