PRECISION AIRS SHARES ON SALE AS OF FRIDAY
The long awaited IPO of Precision Air will finally go underway this Friday, when nearly 59 million ordinary shares will be floated, expected to be bringing in some 28 billion Tanzania Shillings. The capital raised is expected to help finance the airlines ambitious fleet development plans but also boost the working capital structure itself, a sound choice which surely will be reflected in future balance sheets.
Principal owners Michael Shirima and Kenya Airways will see their respective shareholdings of 51 and 49 percent reduce considerably in the process which hopes to attract institutional and individual shareholders from across Tanzania. There is some speculation that even government may invest in shares, although this would contradict official policy towards keeping ailing Air Tanzania flying, but would nevertheless be a sounder decision than pouring endless amounts of money into a national airline which has one plane and lost all market share, while suffering from crippling debts.
Shares will sell at a minimum package of 200 per applicant for 475 Tanzania Shillings each and the process is due to last until the end of October. It is expected that the offer will be oversubscribed as it is the first such opportunity for the Tanzanian financial market to acquire ownership in the countrys most successful airline.
