Dar es Salaam Stock Exchange's (DSE) self-listing starts in the next ten days, with the initial public offer (IPO) that envisages raising 7.5bn/-.
The IPO is expected to last for one month before the stock market joins two of its African counterparts, Nairobi Securities Exchange and Johannesburg Stock Exchange, to self-list on own bourse. Principal Capital Markets and Securities Authority (CMSA) Public Relations Manager Charles Shirima said the IPO kicks off next week or the week after.
"The IPO will run for roughly one month, before self-listing," Mr Shirima said. He said the move seeks to increase transparency and efficiency as the bourse legal structure changes from limited by guarantee to limited by shares.
"The change will eliminate any conflict of interest as DSE members were the trustees and stock brokers as well," he said. However, an industry source told 'Daily News' that the IPO was earlier scheduled to kick earlier, with DSE proposing to start May 2, 2016 but technical hitches delayed the process of approving the prospectus.
"The prospectus was sent to the regulator early this year... but the approval took long than necessary, delaying the IPO date," the source said. The prospectus approval by CMSA means the ball is on DSE.
After the prospectus, the bourse will start road shows on marketing the shares which are expected to be oversubscribed. DSE floats 15 million shares on the IPO at a share price of 500/-.
Self-listing has many advantages including enhancement of corporate governance within the exchange for sustainable protection of all stakeholders. After completion of self-listing process, the DSE will be known as Dar es Salaam Stock Exchange Public Limited Company (Plc).
Stock self-listing is a new drive, which started in 1993 when the Stockholm Stock Exchange was demutualised, followed by Helsinki (1995), Copenhagen (1996), Amsterdam (1997), the Australian Exchange (1998) and Toronto, Hong Kong and London stock exchanges in 2000.
