The Capital Markets and Securities Authority (CMSA) has approved a request from the Dar es Salaam Stock Exchange (DSE) for the latter to absorb more funds from its recent Initial Public Offering (IPO) which was oversubscribed by 377 per cent. DSE's IPO -- which was conducted from May 16 to June 3, 2 -- aimed at raising Sh7.5 billion from the offer of 15,000,000 shares at a price of Sh500 each.
However, it ended up raising Sh35.77 billion which was 377 per cent in excess of the targeted capital or 4.77 times the anticipated amount.
With such a performance, the DSE submitted an official request to the CMSA for the enhancement of the green shoe option from 10 per cent or Sh750,000,000) to 35 or Sh2.625 billion.
"The DSE is pleased to announce that it will exercise a greenshoe option of 35 per cent allowing it to take up an additional Sh2.625 billion above the initial targeted capital of Sh7.5 billion. The total capital raised from the DSE IPO will therefore be Sh10.125 billion," the DSE said in a statement yesterday.
Similarly, the CMSA also approved the DSE's proposal to allocate the shares accordingly whereby applicants for the first Sh5 million (10,000 shares) will get full allocation while those above Sh5 million (10,000 shares) will be allotted on a pro rata basis. The bourse' staff will be allocated three per cent of the shares.
"We are pleased to announce that the proposed allotment has been approved... ..Following the allotment, processing of refunds will therefore be completed by Friday 7th July 2016," the statement reads.
The allotment of shares, electronic crediting of Central Securities Depository accounts and processing of refunds will all be completed by July 11 at 5:00pm while the process of self-listing and commencement of trading of DSE shares on the exchange will be done on July 12.
