 |
| CPA Daniel Warungu, Managing Director of TOL PLC (fourth left), together with Mr. Leonard Kitoka, Chairman of the Board of Directors of TOL PLC (fifth left), speaking to journalists during a meeting held at the TOL PLC offices in Dar es Salaam regarding the launch of a Rights Issue aimed at raising TZS 8.17 billion from the company’s shareholders. The funds will be used to construct a new Carbon Dioxide (CO₂) gas production facility. |
DAR ES SALAAM - September 17, 2026: TOL Gases PLC has officially opened a TZS 8.17 billion Rights Issue to expand its carbon dioxide (CO₂) production capacity, marking the next phase in the growth and transformation of one of Tanzania’s longest-established industrial and medical gases companies.
Under the Rights Issue, TOL Gases is offering 11,501,193 new ordinary shares at TZS 710 per share to eligible existing shareholders.
Eligible shareholders are entitled to one new share for every five ordinary shares held as at the Record Date of Monday, September 14, 2026.
The offer opened on Thursday, September 17, 2026, and will close at 4:00 p.m. on Thursday, October 8, 2026.
The new shares are expected to be listed and commence trading on the Dar es Salaam Stock Exchange (DSE) on Thursday, October 22, 2026, subject to applicable listing requirements.
Capital to expand CO₂ production
The proceeds of the Rights Issue will primarily be used to expand TOL Gases’ carbon dioxide production capacity and related infrastructure.
The investment will cover the design, procurement, installation and commissioning of a new CO₂ production facility, together with supporting logistics and operational requirements.
The capital raise comes as demand for TOL’s products continues to grow beyond the capacity of its existing production facilities, limiting the company’s ability to fully serve domestic requirements and regional opportunities.
Chairperson of the TOL Gases Board of Directors, CPA Leonard Kitoka, said the Rights Issue represents an important transition for the company from business recovery to its next phase of investment and growth.
“Over the past five years, we have rebuilt a stronger and more resilient TOL. The opportunity before us now is to translate that progress into additional capacity. This Rights Issue gives us the means to address a persistent supply gap, strengthen reliability and position the company to serve growing demand in Tanzania and across the region.”
Growth drives demand for additional capacity
Over the past five years, TOL Gases has restored profitability, strengthened customer confidence and consolidated its production and transport capacity.
The company recorded compound annual revenue growth of 9.5 per cent between 2020 and 2025, while EBITDA increased by 28 per cent between 2024 and 2025.
At the same time, rising demand has increasingly tested the limits of TOL’s existing production capacity, with some regional opportunities exceeding the company’s ability to supply.
TOL Gases Managing Director Daniel Warungu said the investment would provide the company with greater capacity to serve customers reliably while creating a stronger production base for future growth.
“This is fundamentally a capacity story. We have strengthened the business, modernised our operations and rebuilt customer confidence, but demand is now testing the limits of what our existing production base can deliver. The next step is to invest in the capacity that allows TOL to respond more reliably to our customers and compete for opportunities that we cannot fully serve today.”
Warungu said TOL’s growth would continue to be matched by investment in safety, sustainability and governance.
“Growth for us has to move together with responsibility. That means the same safety standard for every site and every customer, an ESG approach that creates long-term value for our stakeholders while contributing positively to society and the environment, and governance that reflects the standards expected of a listed company.”
TOL to increase oxygen and nitrogen production
The CO₂ project forms part of a wider capacity expansion programme being implemented by TOL Gases.
The company is also preparing to commission a new 13-tonne-per-day Air Separation Unit, supported by the Clinton Health Access Initiative.
Together with the company’s existing seven-tonne-per-day unit, the investment is expected to increase TOL’s oxygen and nitrogen production capacity to approximately 20 tonnes per day by late 2026.
The combined investments are intended to improve production flexibility and supply reliability across sectors that depend on industrial and medical gases.
Expansion of distribution network
TOL’s expansion programme extends beyond production.
The company is increasing its distribution fleet and establishing new regional distribution centres in Arusha and Mtwara, adding to its existing distribution centre in Mwanza.
The expansion is intended to bring reliable supply closer to customers across Tanzania and the wider region.
TOL’s production platform has also expanded in stages, from EKAMA 1 to EKAMA 2, with EKAMA 3 now in planning alongside the new Air Separation Unit as part of the capacity-building programme outlined in the company’s 2025–2029 strategy.
Serving multiple sectors
TOL Gases currently supplies products and solutions to a broad range of sectors, including healthcare, food and beverage, mining, manufacturing, construction and other industrial applications.
Its portfolio includes oxygen, nitrogen, carbon dioxide, acetylene, argon, helium and other industrial and medical gases.
The company also provides medical gas systems, welding and cutting solutions, medical equipment and related technical services.
More than seven decades of operations
TOL Gases traces its history to 1950, when it began operating in Tanzania as African Oxygen and Acetylene Company.
It was incorporated in 1966 as Tanzania Oxygen Limited, renamed TOL Limited in 1996 and TOL Gases Limited in 2006.
In April 2024, the company converted to public limited company status and became TOL Gases PLC.
Today, TOL combines production, distribution and technical capabilities to serve customers in Tanzania and regional markets, with safety, quality and reliable supply forming central elements of its operating model.
Shareholders given opportunity to participate
Under the terms of the Rights Issue, eligible shareholders have several options outlined in the Prospectus.
Shareholders may take up all or part of their entitlement, while those taking up their full entitlement may also apply for untaken shares, subject to availability.
Tanzania Securities Limited (TSL) is the Lead Transaction Advisor and Sponsoring Broker, while National Bank of Commerce Limited (NBC) has been appointed as the Receiving Bank.
Eligible shareholders can ascertain their entitlement through TSL, the DSE Hisa Kiganjani App, or their respective Stock Broker.
Shareholders are advised to carefully read the Rights Issue Prospectus before making an investment decision, as it contains the complete terms of the offer, application procedures, payment information and applicable investment risks.
The Rights Issue closes at 4:00 p.m. on Thursday, October 8, 2026.
Warungu said the investment should be viewed within the broader context of building the productive capacity required to support Tanzania’s growing economy.
“TOL has been part of Tanzania’s industrial development for more than seven decades. Our responsibility now is to make sure the company has the production capability, technical strength and resilience to remain relevant for the decades ahead. This investment is about building that capacity.”
About TOL Gases PLC
TOL Gases PLC is a Tanzanian manufacturer and distributor of industrial, medical, process and specialty gases, with a heritage dating back to 1950.
The company supplies gases and related solutions to sectors including healthcare, food and beverage, mining, manufacturing, construction and other industries across Tanzania and regional markets.
Its portfolio includes oxygen, nitrogen, carbon dioxide, acetylene, argon, helium and other gas products, together with medical gas systems, welding and cutting solutions, medical equipment and related services.
TOL’s operations place emphasis on safety, quality, reliable supply and responsible production and distribution.
Media Contact:
Hellen Maleko
Head of Brand and Communications
TOL Gases PLC
Email: hmaleko@tol-gases.co.tz
Website: www.tolgases.com
Follow Kitomari Banking & Finance Blog
For more news and updates on banking, capital markets, companies, investments, finance and business in Tanzania, follow Kitomari Banking & Finance Blog.
LinkedIn: https://www.linkedin.com/feed/
Facebook: https://www.facebook.com
Instagram: https://www.instagram.com
X (Twitter): https://x.com/home
No comments:
Post a Comment