The Dar es Salaam Stock Exchange Plc will launch its initial public offer soon, after successfully completing the demutualization that transformed it into a shareholder owned for-profit company. According to a statement from the regulator, the Capital Markets and Securities Authority, the bourse can raise TZS 7.5 billion ($3.4 million) by issuing 15 million ordinary shares at TZS 500 each.
No more details have been released, including a date for the IPO.
A statement from the CMSA, reported in the Citizen news, says: “The IPO and subsequent self-listing of the DSE Plc is the culmination of the demutualisation 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.”
There are 23 companies listed on the DSE, which has a Main Board and 4 companies listed on the Enterprise Growth Market, launched in 2013. Total market capitalization of the listed companies is TZS 22.4 trillion ($10.2 bn)
It is the third African exchange to go through the demutualization and self-listing process after the Johannesburg Stock Exchange and the Nairobi Securities Exchange. CMSA said successful completion of the IPO and listing will help boost the issued and paid-up share capital; the active shareholding; improved corporate governance structure of a public company limited by shares. It will also raise funds for the market to grow and expand including introducing new products and services.

DISCLOSURE – your editor worked with CAPMEX agency from Vienna and other team members to create the demutualization strategy for DSE.