adminDAR ES SALAAM. — The Dar es Salaam Stock Exchange Plc (DSE) share price appreciated by 100 percent during the first day of trading . The share was traded at Sh500 ($0,23) during the initial public offering (IPO) — between May 16 and June 3 — but during the self-listing exercise this week it rose to Sh850 by 10:30am before jumping to Sh1 000 by the close of the trading .Some 20 250 000 DSE Plc shares were listed at the Main Investment Market segment trading with a stock symbol of DSE.
“Our IPO subscription was almost five times the amount we anticipated. With an increase of 35 percent we accepted Sh10,125 billion from over 3 000 shareholders and unfortunately, we had to refund more than Sh26 billion to investors,” the bourse chief executive Moremi Marwa said.
The coming of DSE Plc brings to 24 the total number of listed companies at the bourse, with a market capitalisation of Sh22 trillion.
Of the 24, 17 are domestic while the remaining seven are cross- listed.
According to Mr Marwa, the government bonds that started listing and trading on the bourse since 2002 are currently worth Sh5 trillion while DSE trading and central depository systems are fully automated and can be accessed remotely.
He said DSE introduced the Enterprise Growth Market (EGM) window to provide an avenue for small and medium-sized enterprises as well as new ventures to raise capital.
Five companies have been listed on the EGM and 450 000 investors use DSE for their investment and securities trading activities.
“Despite these achievements, when measured relative to the country’s potential, having a stock market whose domestic market capitalisation relative to GDP is less than 10 percent and with only 17 domestic companies at the bourse, is a serious challenge,” he said.
However, he hailed the government for announcing that telecommunications companies offload 25 percent of their shares and list on DSE.
Mr Marwa hopes the same could apply to the mining sector. — Citizen.
Online Reporter