Frontier Friday: Dar es Salaam Stock Exchange Readies Its IPO
As reported late 2015 and noted by a number of regional market analysts, the Dar es Salaam Exchange (DSE) on May 16 launched the initial public offering (IPO) of the stock exchange following a demutualization process. The listing of the DSE follows that of the NSE and is expected to help move the volumes of shares traded on the Tanzanian stock market.
According to DSE officials, the demutualization of the market will assist in strengthening governance and be an overall enhancement to financial stability, as it will be able to now raise capital on its own.
“The IPO and subsequent self-listing of the DSE is the culmination of the demutualization process approved by the National Demutualisation Committee comprising members from key stakeholders of capital markets in Tanzania including the Ministry of Finance, Bank of Tanzania, Tanzania Stock Brokers Association, DSE Plc and the CMSA,” said a statement released by the Capital Markets & Securities Authority of Tanzania (CMSA). To date the DSE has 23 official companies listed on its main board.
The DSE’s initial offering involves the sale of some 15 million shares that will be tendered to both local and international investors. On offer for three consecutive weeks, the self-listing of the DSE and start of official trading is scheduled for July 12th, 2016.
