Optimism as TICL share sale kicks off

TCCIA Investment Company Ltd (TICL) initial primary offer (IPO) kicked off yesterday with brokers upbeat that the target of collecting 45bn/- in six weeks time will be met.

The stockbrokers are optimistic that the six-week IPO target will be met based on strategies laid on ground.

The strategies include selling shares to Tanzania Chamber of Commerce, Industries and Agriculture (TTCIA) members across the country as well as to members of partner organisations in SADC and East African Community (EAC) member states. 

TICL is an investment wing of TTCIA.

The Chief Executive Officer of the sponsoring broker, Tanzania Securities Limited (TSL), Chief Executive Joaquim Bonaventure said TCCIA also sent their directors in designated zones to assist on selling the IPO. This will bring good results.

“We are using a model similar to Mwalimu Bank IPO…this way we expect to reach a maximum number of investors,” Mr Bonaventure told 'Daily News'. On top of that stockbrokers banked on selling shares in SADC and EAC member states since the IPO is open for foreigners as well.

“Through our stockbrokers association in SADC we anticipate to sell the IPO to those countries under this umbrella,” 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 move is representing 61.3 per cent of the issued share capital of 183,592,400 ordinary shares of a nominal value of 20/- each. Tanzania Securities said though other IPO, especially from tele-companies, are lined in this year first half, being ahead of the others gives them a chance of attaining the required amount.

“It is a challenge but being ahead of the others, we hope to do better and leave room for others as well,” Mr Bonaventure said. The IPOs of three major mobile telecompanies are in the process and expected to start rolling in the second quarter of this year.

Zan Securities CEO Mr Raphael Masumbuko said some investors started to make inquiries of the company immediately after the primary offer went on sale. “Some have started to come…and things will go as planned based on the company performance.

“But trend shows that most investors tend to buy in the last two weeks of the IPO,” Mr Masumbuko said. TICL, which invested only on listed securities, the blue-chip stocks of the Dar es Salaam Stock Exchange, expected to be listed on the bourse April 24.

Since 2011, TICL’s investment portfolio has recorded 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. By end of 2015, TICL’s total number of shareholders was 2,493, of which the LAPF Pensions Fund was the largest with just under 40 per cent of the stock.
Source: Daily News, reported by Abduel Elinaza, from Dar es Salaam, Tanzania
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