TCCIA IPO FLOPS, ASKS FOR EXTENSION

TCCIA Investment Company Ltd (TICL) seeks extension of its initial public offer (IPO) for two more weeks after missing the target by far.

The six-week IPO exercise raised 1.0bn/- only which is 2.3 per cent of the 45bn/- target. The firm was expected to be listed on Dar es Salaam Stock Exchange (DSE) by April 24. 

TICL sponsoring broker, Tanzania Securities Limited (TSL) Chief Executive Officer (CEO) Joaquim Bonaventure said the outcome was disappointing but they have not lost hope.

“The IPO period came to an end before we sealed a deal with a foreign underwriter.

The underwriter may buy 75 per cent of the IPO.

“We have written to capital market asking for extension after Vodacom ends its IPO so as we conclude the deal,” Mr Bonaventure said. TICL, an investment wing of Tanzania Chamber of Commerce, Industries and Agriculture, put at offer 112,500,000 ordinary shares at 400/- each.

The CEO said TICL’s IPO was blanketed by another IPO by Vodacom that went on sale some two weeks after. “Economic hardship also had its toll on the IPO. Investors failed to split their little cash to both IPO,” Mr Bonaventure said.

Earlier, stockbrokers were upbeat that the IPO target would be met based on strategies laid on ground to sell shares through TCCIA scattered branches across the country.

On top of that stockbrokers banked on selling shares in SADC and EAC member states since the IPO is open for foreigners as well.

TICL,mostly invests on listed securities, the blue-chip stocks of the DSE to record a total return of 422.16 per cent which translates into a compounded annual growth rate of 39.17 per cent.

In other words, the portfolio has grown from 6.16bn/- in 2011 to 32.15bn/- at December 2015 without a single extra investment, TICL prospectus shows.

Source: DailyNews