As predicted, the IPO received an
overwhelming response from investors who put up 35.77bn/-, almost five
times the amount earmarked of 8.25bn/-, including 10 per cent of green
shoe.
“This (amount collected) is equivalent
to 377 per cent in excess of the targeted capital… this brings in a
fresh challenge of refunding because of the size of oversubscription,”
The DSE Chief Executive Officer, Moremi Marwa, told reporters in Dar es
Salaam.
He said the redistribution of share
would base on DSE promise made on prospectus on allotment pro-rata
against the number of applicants.
“The reason for raising this capital
tied us to not taking all amount raised, but we are thinking of slightly
increasing our green shoe option percentage. “For allotment pro-rata,
we are considering to give full amount for individuals who bought less
than 5.0m/-, but this is subject to approval from the regulator (Capital
Market and Securities Authority),” Mr Marwa said.
He said DSE would formally request the
regulator to consider individual investors who purchased not more than
5.0m/- worth of shares to get full subscription amount. Out of 35.77bn/-
collected, 30 per cent or 10bn/- came from domestic investors while
foreign investors subscription was 25.77bn/-.
“Due to data domestic investors
oversubscribed the IPO. But the pro-rata would not look at favouring
foreigners or domestic investors, rather individual retail investors,”
Mr Marwa said. Orbit Securities Chief Executive Officer, Laurean
Malauri, said the oversubscription manifested that there are enough
liquidity in the economy to facilitate company growths. “We are feeling
very good…
This is a good sign that investors have
trust on the bourse… this is pure business, not favouritism,” Mr Malauri
said. Orbit said a small portion of investors, 26, used mobile phone
application to buy 18m/- worth of shares.
“The number is small but we are still
encouraging people to continue using this channel,” Mr Malauri, whose
brokerage firm is a sponsoring broker of the IPO, said.
CRDB Bank’s Security Services Manager
Hemed Masumai said they received more than 3,200 applications but even
after the deadline would-be-investor wanted to buy. “If we accepted all
the application, even after deadline, we would have collected some
50bn/-.
After the deadline we received about
1,600 or 50 per cent of on time applications,” Mr Masumai said. He said
even Nairobi Securities Exchange wanted to buy DSE. The bourse put on
offer 15 million shares at 500 each to raise 7.5bn/- with a green shoe
of 10 per cent.
The stock brokers said the
oversubscription was expected since the amount wanted to be raised was
small compared to investors’ appetite.
DSE wants to use the IPO proceeds for
enhancement of its core-operating system, introduction of new products
and services and strategic and operational purposes. The bourse
self-listing is expected to take place on July 12 and refunds at the end
of this month
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