TICL attracts new investors through new shares

DAR ES SALAAM: THE TCCIA Investment Plc Limited (TICL) has listed on the Dar es Salaam Stock Exchange (DSE) 72.9 million rights issue of shares after a hundred per cent success.

TICL’s initial right offering succeeded by 100 per cent after selling all the shares offered, hence meeting a target of raising 10.58bn/-.

The firm listed the share on DSE last Friday after an initial right offering conducted for three weeks from the second Friday of November to the first Friday of December.

Capital Markets and Securities Authority (CMSA), Chief Executive Officer, Nicodemus Mkama, challenged TICL to ensure that the listing of shares increases the shareholders’ return on investment.

“Investors would expect to get benefits from the listing including to get more rights issue shares and bonus issue shares,” Mr Mkama stated when gracing the listing event.

He further said the listing of the rights issue of shares on the DSE provides an opportunity for investors to sell their shares when they need funds for other purposes and know the actual prices of their shares.

CMSA endorsed the TICL right issue move where 72,957,660 shares went on initial rights offering at 145/- per share where rights issue of one new ordinary share for every one share.

The CMSA was satisfied that the company met conditions under the Capitalisation and Right Issues, Regulations 2000.

The funds earned from the sale will enable the TICL to beef up its investment activities in the EAC and SADC regions, especially in equities and bonds markets.

“To achieve our objectives, we must invest in a diversified portfolio of financial assets within Tanzania and the broader East African and SADC markets,” Fortunatus Magambo, TICL Chairman said in the right issue prospectus.

The shares were sold at a discount of 13.79 per cent at the time of the starting of the right issue which the firm believed was reasonable based on current market trends.

Another purpose of the right issue is to expand the company’s assets and its growth by investing in listed equities and bonds and reaching TICL’s strategic targets for capital raising within a set time and budget.

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