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TanzaniteOne for listing on Dar es Salaam bourse

TanzaniteOne for listing on Dar es Salaam bourse

The biggest tanzanite mining firm in the world wants to off-load its 20 per cent stake on the bourse through an Initial Public Offer that is exclusive for Tanzanians. Capital Markets and Securities Authority (CMSA) Principal Public Relation Officer Charles Shirima confirmed to the Daily News that the firm had submitted its application for the IPO.

“The authority is working on the prospectus prior to approval,” Mr Shirima said, “I can’t tell off hand the length of approval process…but does not take long under normal circumstances.” Core Securities is the leading sponsoring brokerage firm of the transaction.

TanzaniteOne becomes the first IPO in this year though there are a number of enquiries for listing under the Entrepreneurs Growth Market (EGM). The tiny bourse established the EGM under which laws and procedures were relatively relaxed to encourage listing by small but potential companies.

Commenting on the envisaged IPO, Orbit Securities’ Chief Executive Officer Laurean Malauri said the offer would be easily oversubscribed because the amount of shares offered is not enough. “But, the good thing is that the IPO is locked for Tanzanians,” Mr Malauri said.

DSE CEO Gabriel Kitua was quoted as saying the IPO would be oversubscribed as there is a very huge demand for new investment channels in the market. But, before buying investors will need assurance that the company is profitable.

A source told the ‘Daily News’ that TanzaniteOne seek to raise 4.5bn/- during the IPO which has the greenshoe option—a window that allows the underwriter for a new issue to increase the size of the issue because of high demand for the shares. The source said out of the IPO’s 20 per cent, TanzaniteOne has retained five per cent for its workers. TanzaniteOne, plans to produce 2.5 million carats this year, generating 24 million US dollars (over 38bn/-).

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CASSAVA is an important crop for food ...

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Author: ABDUEL ELINAZA

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