Tanzania: Precision Air shares up for sale at DSE next month

Precision Air shares will be ready for sale to the public at the Dar-es-Salaam Stock Exchange (DSE) after mid September.

This was said yesterday by Orbit Securities Company Limited chief executive officer Lawren Mlawi in an exclusive interview with The Guardian on Friday.

He noted that the brokers are finalising all procedures as regards the firm’s accounts in order for the shares to be open for members of the public.

“The Initial Public Offering (IPO) might open Precision Air shares during mid September,” he said adding that they have accomplished all necessary details. Precision Air had planned to sell a third of its shares from in an IPO by the end of the year to fund for the firm’s expansion through in an announcement they issued in March this year at the bourse.

The company intends to widen its shareholder base and present shareholders, which include Kenya Airways KQ with 49 percent, who are set to reduce their own holdings substantially.

KQ is expected to retain about 30 percent shareholding but the commercial cooperation with Precision Air in terms of code shared flights and the exploitation of synergy effects will not only continue but is expected to strengthen further.

This was initially said by the Capital Markets and Securities Authority (CMSA) chief executive officer, Dr Fratern Mboya.

He told the media in Dar es Salaam early this year that regulatory approvals particularly evaluation of the company's prospectus are progressing well.

Eventually, Precision Air Services Limited proceeded with the listing processes at the DSE.

Mlawi mentioned that his company attracts customers through agency network whereby clients are called by the company brokers to educate them about shares.

Moreover, the company has clients of over ten years whom they tend to keep and brief them on daily and monthly market reports.

SOURCE: THE GUARDIAN