https://dse.co.tz/
DAR ES SALAAM: TOL Gases PLC has opened an 8.17bn/- rights issue to finance expansion of its production capacity, as demand continues to outpace existing capacity.
Under the offer, the company is issuing 11,501,193 shares at 710/- each to existing shareholders, with one new share for every five shares held as at September 14, this year, the record date.
TOL Gases Chairman, Mr Leonard Kitoka said yesterday in Dar es Salaam that it has strengthened its operations over the past five years and was entering a new investment phase focused on expanding capacity to meet demand.
“Over the past five years, we have rebuilt a stronger and more resilient TOL. The opportunity before us now is to translate that progress since the demand for the products has increased beyond the current production capacity,” he said.
The company’s CO₂ production capacity currently stands at 4.8 tonnes per hour, which management says is insufficient, particularly during peak demand between September and February.
During the period, demand rose across the region, with the company receiving inquiries from markets including South Africa, Zimbabwe, Zambia and the Democratic Republic of Congo (DRC).
The investment forms part of TOL’s wider 2025–2029 growth strategy, marking a shift from a five-year period of business recovery and operational strengthening to an expansion phase.
During the period, demand rose across the region, with the company receiving inquiries from markets including South Africa, Zimbabwe, Zambia and the Democratic Republic of Congo (DRC).
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The investment forms part of TOL’s wider 2025–2029 growth strategy, marking a shift from a five-year period of business recovery and operational strengthening to an expansion phase.
Most of the funds will finance a CO₂ facility, covering design, procurement, installation and commissioning. The plant, estimated to cost 15.7bn/-, is targeted to start production in 2027.
TOL is also pursuing a project to double oxygen production capacity, expected to commence production around October or November this year.
The Company’s Managing Director, Mr Daniel Warungu said the investment would increase production while strengthening supply reliability.
“This investment will provide the company with greater capacity to respond to existing demand while creating room to compete for new opportunities in Tanzania and neighbouring markets,” he said.
Additional capacity is expected to reduce supply disruptions during maintenance or breakdowns and improve service to domestic and regional customers.
CMSA Director of Market Supervision and Investigation Mr Exaut Julius said the initiative was consistent with Tanzania’s Development Vision 2025 and National Development Plan, particularly in promoting investment opportunities for Tanzanian shareholders.
The expansion is projected to lift revenue from 32bn/- to 61bn/- by 2029 and 70.5bn/- by 2030, while profit before tax is forecast to rise from 6.7bn/- in 2025 to 20bn/- in 2029 and 24bn/- by 2030.
