ARUSHA based internet service provider, Habari Limited is set to become the first tech company to list on the Dar es Salaam Stock Exchange (DSE), so as to raise capital and scale up in business.
Habari Limited is now preparing for an initial public offering (IPO) of its shares next month to raise 5.0bn/- and subsequently listing on the stock market to conform with mandatory requirement for telecoms to list at least 25 per cent of their shares on the local market.
The firm which began as a cooperative society some 20 years ago, wants to start offering its share to the public next month or early next year subject to prospectus approval by market regulators.
Habari Limited Business Manager, Kilusu Mattasia told the `Daily News’ yesterday that before the end of this month, they will submit the document to the Capital Market and Securities Authority (CMSA).
“We want to go for IPO on the onset in November, but not December as it does not augurs well with end of the year festivals.
“If we fail to start next month then we will do so early January, next year, “said Mr Mattasia, in an interview from Arusha.
The manager said it was too early to tell price per share and the amount of share to be put on offer until they get a full approval from CMSA. He said the money raised from the IPO would be used for geographical expansion and extension of internet services through LT, modems, to low earnings individual. “We have four physical offices in Arusha, Kilimanjaro, Mwanza and Dodoma - we want to go to other regions as well,” he said.
Habari Limited has the largest fibre network cable in Arusha and wants to replicate the same to other regions.
“We also want to provide quality internet services via LT platform, to as low 10,000/- a month, which is affordable by many,” Mr Mattasia said. The IPO fund will also enable them to strengthening and accelerating their software development. The firm has already developed payroll software, and Account System will be launched soon.
According to reports, Habari Limited has an annual turnover of over 2.0bn/-. The firm established in 1994 wants to take advantage of incentives offered in many emerging markets to go public by becoming the first tech company to list on DSE.
It holds a licence to distribute internet and as a result its falls under the umbrella of companies required to list at least 25 per cent of their shares on the local market. Tanzania’s total revenue from media and entertainment was estimated just over 500 million US dollars in 2016 and is expected to double to over 1.0 billion US dollars in the next five years.