Tanzania: Three more institutions eye IPO to raise capital

The Capital Markets and Securities Authority (CMSA) has approved three institutions to raise funds from the public and some to be listed at Dar es Salaam bourse.

The equity firms, Watumishi Housing Company Real Estate Investment, Collective Investment Scheme, and Mufindi Community Bank (MuCoBa) raising capital through primary offer, received an operational green light.

CMSA Principal Public Relations Officer (pictured), Mr Charles Shirima said Watumishi and Collective Investment Scheme will not list on Dar es Salaam Stock Exchange (DSE) immediately.

"For Mufindi Bank (MuCoBa), once all relevant logistics are worked out, it will increase its capital via IPO and late listed on DSE's alternative market," Mr Shirima said.

Umande is open-ended trust fund under Core Capital Securities which has three funds - the Umande Capitalisation, the Umande Income and the Umande Balanced.

The Umande funds provide access to the equities listed at the DSE as well as access to government bills, bonds and money market, in Tanzania and outside. Umande tax benefits include no capital gains tax on Units redeemed and reduced withholding tax on dividends at 5.0 per cent.

Watumishi is formed by six pension fund and National Housing Corporation (NHC) to operate a scheme for construction and selling houses to the public.

"Washirika will initially operate on a closed end basis but later on will be opened for other investors in two to three years," Mr Shirima said.

The scheme started with 68bn/- and is expected to grow gradually to 358bn/- in five years.

The funds are the National Social Security Fund (NSSF), PPF Pension Fund, Local Authorities Pension Fund (LAPF), Government Employees Pension Fund (GEPF), Public Service Pension Fund (PSPF) and National Health Insurance Fund (NHIF).
Source: Daily News, reported from Dar es Salaam, Tanzania
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