DSE Share Price Rise 100% at First Day of Listing

dar es salaam stock exchange

The Dar es Salaam Stock Exchange (DSE) listed at the DSE secondary market under the ticker “DSE” on July 12th 2016.

The Tanzanian bourse listed 20,250,000 shares at a price of TZS500 per share. By the end of the trading session on July 12th 2016 the DSE shares closed at TZS935 after reaching a high of TZS1,000.

“The Listing […] will give investors who bought their shares at the primary market an opportunity to exit by selling their shares at the secondary market and new shareholders to buy the same”, DSE indicates.

The secondary market listing is a result of the DSE Initial Public Offer (IPO) conducted from May 16th 2016 to June 3rd 2016.

The DSE IPO aimed to raise TZS7.5b from the offer of 15m shares at a price of TZS500 each. However, the Tanzanian bourse raised TZS35.8b from more than 3,000 investors, which is equivalent to 377% in excess of the targeted capital.

Following the oversubscribed IPO, the bourse exercised the green shoe option of 35% to take up an additional TZS2.6b.

The green shoe option allows underwriters to sell investors more shares than initially planned by the issuer to meet higher demand for the security.

Therefore, after exercising the DSE green option, the total capital raised from the DSE IPO is TZS10.1b.

DSE Performance

Currently (2016), there are 24 listed companies at the DSE, 10 licensed brokers and 3 custodian banks.

The latest company to list at DSE is Mucoba Bank (DSE:MUCOBA), after raising a capital of more than TZS2b during its IPO.

The DSE market capitalization grew at a rate of 110% per year over the past 5 years, reaching TZS21tn in 2016 from less than TZS6tn in 2010.

The DSE liquidity grew at a rate of 56% annually since 2010, reaching an average turnover of over TZS800b per year.