WATUMISHI Housing Investments (WHI) Initial Public Offer has been oversubscribed by 173 per cent, thanks to the use of the Government Electronic Payment Gateway (GePG) system that created investors’ confidence to invest in the scheme.
Through the IPO, the WHI received applications for Faida Fund Units worth 12.95bn/- compared to the 7.5bn/- target. The WHI, a house developer and a licensed fund manager launched an open-ended Faida Fund Scheme in October last year.
The WHI Chief Executive Officer, Dr Fred Msemwa said in Dar es Salaam yesterday that the outstanding performance was contributed by the use of the GePG system enabling them to exceed the target by 173 per cent.
“The GePG system gave investors confidence to invest in the WHI Faida Fund Units because it is safe and user-friendly,” he said adding by using a phone or computer investors can buy units without visiting the WHI office or bank.
Dr Msemwa said also that the government has removed anyone who makes a transaction for Faida Fund Units with exception of mobile phones where an investor has to pay small charges.
Faida Fund is an open-ended collective investment scheme operated by WHI as Fund Manager and CRDB Bank Plc as Custodian Bank.
WHI is a company which is under the President’s Office of Public Service Management and Good Governance and licensed by the Capital Markets and Securities Authority as a Fund Manager.
The Public Offer for Faida Fund Units was opened on 1st November and closed in December last year.
Dr Msemwa said that the performance is the highest rate that could be recorded in recent years.
Either Dr Msemwa said it is a good sign for Tanzanian’s financial market because it shows the economy has been growing because people have been able to save as well as participate in Faida Fund Units.
“More than 90 per cent of the investors in Faida Fund are individuals, so the fund will raise the economy of each individual, while large government institutions participate, including all pension funds.
He said that by using GePG they were able to register 3800 people and among them more than 800 had already invested.
Dr Msemwa said that the success has shown how investors and all Tanzanians have trusted them so they will work hard to meet their expectations.
Speaking at the launch of the scheme in October last year, Dr Nsemwa said Faida Fund Unit seeks to create wealth, particularly middle and low-income earners through investments in units.
“The idea is for the investors to obtain competitive return through capital growth and enhance the culture of savings…,” he said.