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Erudite AfricaCenter of Excellence
← Equity Capital Markets (ECM)

Offer structuring, pricing and valuation

Module 03 / 5 · 65 min

Design the offer (primary or secondary, tranches, size and float) and set the price through fixed-price or book-building methods.

In this module you will learn to

  • Choose between primary and secondary shares and size an offer against the issuer's need and the float rules
  • Design tranches for retail, institutional, diaspora and employee investors, with clawback and allocation rules
  • Compare fixed-price and book-building methods and set a price range
  • Compute the IPO discount, dilution and implied multiples, and explain stabilization concepts and their limits in Ethiopia

Built on

  • Erudite Africa training module: Ethiopian Context, topic 3.e Equity Capital Markets (ECM), Levels 1 and 2 (October 2026), extended to Advanced depth
  • Capital Market Proclamation No. 1248/2021 and ECMA Fee Directive No. 996/2024; ECMA Directive No. 1030/2024 on public offers (reported in the program register, text to confirm)
  • Ethiopian Securities Exchange Rulebook (December 2024): Main Board Rule 5.1, Growth Board Rule 6.1 and trading rules
  • NBE directives as listed in the lessons: SBB/95/2025, SBB/91/2024, SBB/90/2024, SBB/89/2024, SBB/88/2024, SBB/87/2024 and SBB/78/2021 (reported)
  • Commercial Code Proclamation No. 1243/2021 on share issues and pre-emption (provisions described in general terms)
  • Public reports of the Ethio telecom 2024 share offer, used as a teaching case

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.