Stock market investors are optimistic that the Dar es Salaam
Stock Exchange (DSE) can handle the anticipated big primary offer from
telecommunications companies scheduled to list at the bourse.
The DSE survey shows 50 per cent of sample size believe the
market is liquid enough to handle 1.5tri/- primary offer of tele-companies.
The survey results show those who trusted the market has
ability representing 19 per cent of total votes and those who said not all but
partial 31 per cent.
The combination of two at least shows that the market has
the ability to buy the IPOs by 50 per cent of leading tele-firms namely
Vodacom, Tigo, Airtel, Zantel, TTCL and Smart.
On the other hand, those who doubted were 44 per cent, while
6 per cent don't know.
The survey, published on the first week of last month on DSE
insight twitter, asked ‘wananchi’ about buying ability of the market for
historical IPOs for phone companies.
Some stockbrokers believed the market has ability to handle
the entire initial primary offer (IPO) for mobile phone service providers.
Zan Securities Chief Executive Officer (CEO) Raphael
Masumbuko said he strongly believed that the market was liquid enough to handle
those IPOs. “We wanted phone firms to list for the last three years. We were
ready then and we are now.
The market has that ability,” Mr Masumbuko said yesterday.
“However, the IPOs should not be accompanied by unnecessary conditions like
restriction on exit and entry,” he cautioned.
Stockbrokers also banked selling of the tele-companies to
regional blocs like SADC and East African Community (EAC). “We have a very good
mutual business agreement with our counterparts in SADC. We are exchanging a
number of dealing on our markets,” Mr Masumbuko said.
Capital Markets and Securities Authority, Principal Public
Relations Officer, Charles Shirima, said yesterday only two firms have
submitted formal application for IPO. “Vodacom and Tigo have submitted their
prospectus. Voda is ahead of others.
Tigo have been asked to improve their prospectus,” Mr
Shirima said. He said list of telecom stipulated by the Electronic and Postal
Communications Act, (Cap. 306) is long and has over 50 firms under different
categories.
The main ones are big five that controls over 40 million
subscribers and required to offload 25 per cent of local ownership to the
public.
Others feared that lining up the firms might end with some
shares left unsold thus defeating the good intention of offloading the shares
to the public via DSE.
By the end of November last year, extended broad money
supply, M3, increased by 4.6 per cent or 981.2bn/- to 22.5tri/-.
The increase was low compared to 14.6 per cent or 2.7tri/-
of November 2015.
Bank of Tanzania (BoT) latest monthly review attributed the
slow increase of money supply to contraction in the net foreign assets of the
banking system and slowdown in the growth of credit to the private.
Source: Daily News, reported by Abduel Elinaza, from Dar es
Salaam, Tanzania
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