Highlights:
Date » 15 November 2019: Stock Prices (TZS) **ACA » 6,650 CRDB » 95 DCB » 295 DSE » 1,000 EABL » 4,480 JHL » 7,850 KA » 65 KCB » 1,100 MBP » 490 MCB » 500 MKCB » 780 MUCOBA » 400 NICO » 175 NMB » 2,340 NMG » 800 PAL » 400 SWALA » 490 SWISSPORT » 1,600 TBL » 10,900 TCC » 17,000 TICL » 385 TCCL » 600 TOL » 660 TPCC » 2,000 TTP » 120 USL » 10 VODA » 850
TSL News
VODACOM RECOMMENDATIONS
Preamble
One of the largest (top-three) mobile network operators (MNOs), namely MIC (T) Limited (Tigo), is currently facing a legal challenge relating to the shareholding and ownership of the company. In February 2017, Tanzania’s Capital Markets and Securities Authority (CMSA) suspended the planned IPO of MIC Tanzania Limited (Tigo), pending resolution of the shareholders’ dispute, resulting in delay its intended listing on the bourse. Another large (top-three) player, Airtel Tanzania Ltd (Airtel), is currently in dispute with the Government over a controversial transfer of state-owned Tanzania Telecommunications Company Limited (TTCL) shares and ownership of the company to Celtel Tanzania (now Airtel Tanzania Ltd). Through the state-owned TTCL, the government has laid claim over and is pushing to retake the ownership of the Airtel Tanzania Ltd. Moreover, earlier this month, the Tanzania Communications Regulatory Authority (TCRA) threatened to penalize telecom companies (including Tigo and Airtel) that have not completed the process of listing their shares at the Dar es Salaam Stock Exchange (DSE).
Our take
The above developments together with the fact that the third top-three MNO is already listed on the Exchange, indicate limited or no likelihood of a major consolidation in the immediate future (3 – 5 years). This conclusion is also backed by the fact that fast-growing Halotel might not be interested in a consolidation at present for two reasons: (i) it is largely a Vietnamese government enterprise that has sufficient financial muscle and a seemingly working strategy, and (ii) it will be more interested/opportune to cash in on the on-going misfortunes of the larger players.
Competition
On the side of competition, as at September 2017 Vodacom had the largest share in Tanzania’s market (32%), followed by Tigo (27.6%), Airtel (26.4%) and Halotel (9.4%). In comparison to FY2016, Viettel Tanzania Limited (Halotel) the fastest growing mobile operator saw its subscription rising by approximately 21.7% while Vodacom’s grew by 4.1%, Airtel’s by 0.7% and Tigo’s declined by 8%. Halotel’s commitment, growth and strategic plans of injecting about $100 million (about TZS 223 billion) in network and services to rekindle competition for data and voice communication among operators in the industry could intensify competition in the medium to long-run.
Further, the introduction of Mobile Number Portability (MNP) back in March 2017, could also lead to a more intense competition among telecom companies. MNP which is available to both Post-Paid and Pre-Paid customers provides flexibility to mobile subscribers to change service providers or services without changing their telephone numbers. MNP may not necessarily affect the market shares or cause pricing competition, but ii could lead to a disastrous effect if and when competitors start fighting price wars. MNP is a tool which could further strengthen competition leading to improvement of quality of service and stimulate innovations.
Notwithstanding the above, we expect Vodacom to remain at the top for the foreseeable future. The Industry in general is expected to grow, driven by mobile money and data service, which implies that demand for telecom products is expected to remain strong. For the Voda price, we expect an unch situation in the medium term, hence our hold recommendation on the Vodacom stock.
 
Tanzania Securities Limited Scoop DSE Members Awards (2017)
Tanzania Securities Limited (TSL) was declared the first runners-up in category of Best Stocker Broker in Tanzania. TSL emerged as second best stocker broker in the category in recognition of its contribution in providing stock brokerage service to the public in Tanzania. The award was announced by the Dar es Salaam Stock Exchange PLC (DSE) for its DSE Members Awards 2017. DSE Members Awards is an Annual Programme that was introduced by DSE in 2016 with the main objective of fostering good practices in the Tanzanian capital markets. DSE Members Awards 2017 Programme aimed at recognizing all market participants in their respective roles for excelling in the areas of Environment; Social Responsibility; Investors' protection; Sustainable Growth of their Business, Good Corporate Governance; as well as Transparency including engagements with investors, media and the public at whole..
 
DSE Members Award 2017 winners are as follows;
 
  1. Two Best Listed Companies of the Year in the Main Investment Market (MIM) Segment;
  • Tanzania Breweries Ltd (TBL)
  • NMB Bank Plc
  1. Best Listed Company of the Year in the Enterprise Growth Market (EGM) segment;
  • Yetu Microfinance Plc
  1. Best Stock Broker of the Year
  • Orbit Securities Company Ltd
  • 1st runner up Tanzania Securities Ltd and
  • 2nd runner up Zan Securities Ltd
  1. Best Custodian of the Year;
  • Standard Chartered Bank
  1. Best Digital Media House of the Year for Reporting Financial News;
  • Tanzania Broadcasting Corporation
  1. Best Print Media House of the Year for Reporting Financial News.
  • Tanzania Standard Newspapers.

IMG 20171002 082923

 
Thinking of going public in Tanzania

Companies are constantly seeking for growth and expansion so as to increase shareholders' value. Listing of company's shares or simply going public is one of the ways through which companies can achieve their growth objectives at a lower cost. Taking loan will in most cases costs more than public offering. Going public require time and of course some money but the advantages of going public have been proved to be of value adding to the company in a long run. This paper intends to give an overview of the IPO and listing Process and should not be taken as an advice to the IPO and Listing process.

Read more

 
Swala Oil and Gas IPO prospectus

Swala Oil and Gas (Tanzania) Plc "Swala", a public company incorporated in the United Republic of Tanzania is looking to raise TZS 4.8 billion capital from the public through a sale of 9.6 million shares at a price of TZS 500 per share. Swala's principal activity is the exploration of oil and gas "hydrocarbons" reserves in Tanzania.

The funds that will be collected from the IPO will provide additional funds to the working capital.

The Offer opens on 9th June 2014 and closes on 4th July 2014. The shares of SWALA will subsequently be listed on the Enterprise Growth Market Segment (EGM) of the Dar es Salaam Stock Exchange. The trading of SWALA shares after the closure of the IPO will be done at the Dar es Salaam Stock Exchange through Brokers.

Click here to download prospectus

 
TOL Gases Limited Rights Issue Oversubscribed

27 March 2014

The TOL Rights Issue shares received oversubscription which is seen as a signal of the investors' confidence on the local owned gas company which has recently moved from loss making into profit making position. Despite the fact that TOL has never paid any dividend since it was listed in 1998, the shareholders still have confidence on the company's future outlook.

The local owned gas company intended to raise TZS 4.47 billion from the sale of 18,611,843 shares at a price of TZS 240 in a ratio of 1 new share for every 2 existing shares, but end up collecting TZS 5.93 billion. The company accepted application for 18,611,803 new shares which is equivalent to TZS 4.47 billion. The excess amount received was refunded to shareholders between 10th - 21st March 2014.

The new shares are now listed on the Dar Es Salaam Stock Exchange and shareholders can trade on the shares through Licensed Brokers. Shareholders who applied for the Rights issue shares can collect their Depository Receipt through their respective Receiving Agents. For shareholders who submitted their application through receiving bank, they can collect their Depository Receipt from TOL Gases Limited Offices in Dar es Salaam.

TOL Gases Limited made a Rights issue to raise funds to finance major refurbishment of its ASPEN 1000 plant, commissioning of Argon plant, purchase of other associated equipments such as standby generator and storage tanks for liquid Nitrogen and Liquid Oxygen. The results of the Rights Issue means that TOL can now implement its development plan which are in line with its turnaround strategy.

 
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