PRECISION AIR IPO ENDS
Yesterday saw the closure of the IPO of Precision Air shares, for which Tanzanians and East Africans could place applications of a minimum of 200 shares, valued at 475 Tanzania Shillings.
Stock brokers and participating banks reported doing brisk business and there is an air of expectation that the offer is going to oversubscribed, when the details of the IPO are made public on the 11th of November. Formal trading of the shares will then commence on the 08th of December, at which time the Precision Air shares will be publicly quoted for the first time.
The airline offered nearly 59 million shares and major shareholders Kenya Airways and Tanzanias Mr. Shirima will after the exercise see their 49 and 51 percent shareholding reduce into the low and mid 30 percent range, still leaving them with a sound majority though. Precision aimed to raise almost 28 billion Tanzania Shillings to finance a further fleet expansion and to allow for more destinations to be opened in coming years, after establishing itself as THE airline of substance in Tanzania.
Watch this space for further updates in November and December respectively when the IPO results and the first trading values will be announced.