The stockbrokers at separate interviews said the firm has a bright future after scraping off all risk related investments, especially factories, after selling. Core Securities Chief Executive Officer, Mr George Fumbuka, said the firm sold off their physical cash generating assets and remain with a meat factory in Dodoma.
“The Dodoma meat factory has been entered in the book with a zero amount. This is to disassociate NICOL with any possible future losses,” Mr Fumbuka said. Core Capital is a lead advisor while Core Securities is sponsoring broker. Mr Fumbuka said “the company has a clean balance sheet with no pending loans.”
NICOL CEO, Kinoni Wamunza, said the company has squared off its 12bn/- debt inherited from the previous management. “The company is doing fine and in next AGM (Annual General Meeting), we are going to issue dividends for 2017,” Mr Wamunza said.
Zan Securities CEO Raphael Masumbuko said some shareholders may venture out of the firm, but others will come in since the company now own less risk assets - equities. “The future of NICOL is promising. The relisting is good news to shareholders.
“The new management demonstrate good governance, but also invested wisely on stocks,” Mr Masumbuko said. He said also the NICOL delisting saga has offered a good experience and investors put their confidence to regulators—CMSA and DSE.
Yesterday slightly over 69 million NICOL share began trading at 300/- a piece to restore back price setting mechanism and entry and exit doors that was locked in the last seven years. The firm total portfolio value at the end of quarter one was at 98.92bn/- from nine listed companies.
CMSA acting CEO Nicodemus Mkama said the management deserved a pat on the back since it has managed to return the firm to profitability level and grew capital. “They managed to work out on all queries raised well and qualified to join the bourse again. “The capital (also) grew from 4.6bn/- in 2014 to 96.2bn/- last year,” Mr Mkama said.
DSE Chairman Jonathan Njau said the fund should stick to its mandate as stipulated in its constitution. “If NICOL wants to remain at the DSE for a long haul, the observance of good corporate good governance principles and best practices is not an option, it is a must,” Mr Njau, a former DSE CEO, said.
The company holds 6.6 per cent stake in NMB Bank or 33.04 million shares, 5.1 per cent in TBL or 361,810 shares, 1.5 per cent in DSE plc or 1,285, 831 shares and 0.9 per cent in Vodacom 1.0 million shares. Other investments in equities are Swissport, TCC, Twiga Cement, Simba Cement and CRDB Bank.
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