13 August 2012

Tanzania Women Bank Seeks to List Through New Window

DAR ES SALAAM, Tanzania Women Bank (TWB) has confirmed that it will be one of the first financial facilities to list at the newly introduced Enterprise Growth Market (EGM) of the Dar es Stock Exchange (DSE).

The TWB's Executive Director, Ms Margreth Chacha said in an interview that the bank's move to go public aims to extend its ownership wings as well as grabbing cheap source of capital through the issuance of shares.

Tanzania's second bourse segment, EGM, is expected to start before end of the year. The idea behind the market is aimed at facilitating those firms which do not qualify to list at the main market.

Several firms according to the DSE have expressed interest to list at the new facility to explore the opportunities offered including the cheap source of capital.

However, DSE declined to disclose the names of the firms because they were yet to complete their prospectus.

"It is an important move that will provide an opportunity for Tanzanians to own stake at the bank which is making positive growth," she said.

The Bank of Tanzania (BoT) issued the Tanzania Women Bank (TWB) with a new banking licence in the name of Tanzania Women's Bank Public Limited Company.

"This is to inform the general public that TWB Limited changed its legal status from a Private Limited Company to a Public Limited Company," stated the report.

According to Chacha, after securing permission from the BoT, the next stage will be to prepare the prospectus as required by the Capital Markets and Securities Authority (CMSA). In the meantime, after acquiring $1.25m (about Tsh2bn) from the government to boost its capital, she said the TWB plans to open some new branches including Kariakoo area which is badly needed by women.

She added the bank will also direct its effort to the upcountry especially in training small scale entrepreneurs on financial literacy. The DSE Chief Executive Officer Mr. Gabriel Kitua said recently three more companies were expected to list at the bourse this fiscal year bringing the number to nearly 20 firms, a move that will further stimulate activities at the market.

"Obviously, the increased number of listed companies will make the bourse more active and one of the fastest growing market in the region despite being small," he said.

He said DSE has already received prospectus of the London-listed Richland Resources, the parent company of TanzaniteOne, planning to offload a 20% stake during a cross-listing and initial public offering on the Dar es Salaam Stock Exchange.

Kitua added that the bourse, forecast strong interest from investors on Richland's shares. "There is a growing demand for new IPOs in the country. If investors will be satisfied by the profitability of the company, it will not prevent the firm's IPO to oversubscribe," he said.

The gas company is expected to issue new shares despite being listed in the London based Stock Exchange in order to mobilise funds for the exploration of gas in the southern Tanzania.

The total market capitalization has rose to $8bn (Tsh12.80trn), while domestic market capitalization is $1.602bn (Tsh2.56trn) as at end of last week. Currently, there are 11 listed domestic companies and six cross listed firms. The bourse's total market capitalisation has more than doubled to $8bn (Tsh12.80trn) as of July this year compared to $3.706bn (Tsh5.93trn) recorded in the similar period last year.

Similarly, the domestic market capitalisation jumped to $1.606bn (Tsh2.57trn) in July 2012 compared to $1.337bn (Tsh2.14trn) of the corresponding period last year.

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