Uda eyes over Sh200bn in listing at DSE

Simon Group CEO Robert Kisena receives a symbolic key from Mr Shiraz Rashid, managing director of vehicle dealer Africarriers, during the handing over of 40 new buses for Uda in Dar es Salaam last year. PHOTO | FILE      

By Samuel Kamndaya, The Citizen Reporter

In Summary

Mr Robert Kisena, chairman and CEO of Simon Group, which has a controlling stake in Uda, told The Citizen in Dar es Salaam on Wednesday that the money would help the company with preparations for the second and third phases of the Dar es Salaam Rapid Transit (Dart) project.

Dar es Salaam. Dar es Salaam commuter transport company Uda, plans to raise at least Sh200 billion when it lists on the Dar es Salaam Stock Exchange (DSE).

Mr Robert Kisena, chairman and CEO of Simon Group, which has a controlling stake in Uda, told The Citizen in Dar es Salaam on Wednesday that the money would help the company with preparations for the second and third phases of the Dar es Salaam Rapid Transit (Dart) project.

“With it we will be able to buy more buses and do other tasks associated with preparations for the second and third phases of Dart,” Mr Kisena said.

The first phase of the project – expected to kick off toward the end of this year – includes construction of 20.9 kilometres of bus ways from Kimara to Kivukoni, Fire to Kariakoo-Gerezani and part of Kawawa Road from Magomeni to the Morocco junction, as well as 27 stations, five terminals and two bus depots.

Mr Kisena said Enterprise Growth Market Advisors (EGMA), one of the four companies that have been licensed as nominated advisers (Nomads) for firms seeking to list under DSE’s Enterprises Growth Market (EGM), is currently assessing Uda’s potential for listing.

Uda is seeking to list on the main segment of the 18-year-old stock market.

If everything goes according to plan, said Mr Kisena, Uda should be able to issue an IPO in either January or February, next year.

The listing is expected to provide a lasting solution to persistent wrangles over ownership of the once state-owned company. Some quarters, mainly politicians, have questioned the firm’s privatisation.

But Mr Kisena reiterated on Wednesday that the controversy was based on misinformation on what transpired during that time.

He said the 52 unallocated shares for Uda were sold in a “clean” deal while the other 20 per cent – which was sold later to bring Simon Group’s stake to 72 per cent – was also acquired in an agreement that was aboveboard.

The listing is thus meant to bring Uda back to the public. “We envisage offloading 20 per cent to the public via an IPO while another 20 per cent will be sold to daladala owners,” he said.

With time, Simon Group may decide to offload more and more shares. “Even if we are to remain with 30 per cent of shares, we will still be having a controlling stake since the other 70 per cent will be in the hands of individuals,” he said.