THE Enterprise Growth Market Segment (EGM) of the Dar es Salaam Stock Exchange (DSE) is expected to be officially launched on Tuesdsy by the Prime Minister, Mr Mizengo Pinda.
The ceremony, which drives the country's capital market to higher level, will be held at the Kilimanjaro Hyatt Regency in Dar es Salaam. The Capital Markets and Securities Authority (CMSA) Principal Public Relations Officer, Mr Charles Shirima, said the EGM segment is designed to enable startup, small and medium enterprises to access capital markets to raise capital.
"The segment is the opportunity for SMEs that could not meet the requirements of the Main Investment Market Segment (MIMS) of the DSE to raise the required capital," Mr Shirima said.
The EGM, officer said, will exist in conjunction with and complement the existing Main Investments Market Segment (MIMS) at DSE. The first company to list on the EGM will be the Maendeleo Bank which recently successfully completed its initial public offer (IPO) where eight million shares were on offer at the price of 500/- each.
The IPO also had an option to offer additional one million two hundred shares in the event of the offer was being oversubscribed (green shoe option). The establishment of the EGM is a result of recommendations of a study conducted by CMSA on appropriate capital markets structure for Tanzania in its efforts to develop and strengthen the capital markets.