[2008-02-25]  Nicol to Float Shares On Bourse
The National Investment Company Limited (Nicol) shareholders will start to sell their shares after the company announced plans to float fully paid shares at the Dar es Salaam Stock Exchange.

This will enable non-shareholders to have an opportunity to buy shares through the capital market's secondary market.


Nicol board chairman Felix Mosha said in Dar es Salaam during the launch of the company's new shares sale yesterday that listing will be done in May.

"Approval for the shares issue and listing has been received from the Capital Markets and Securities Authority (CMSA) and admission for listing ordinary shares at the DSE has been received," Mr Mosha told the company's investors.

For the purpose of marketability and allowing broader participation of ordinary Tanzanians in the shares issue, the board of Nicol resolved to sell new 50 million shares to raise Sh15 billion.

This is the third time Nicol has announced the sale of shares through the initial public offer (IPOs). 0ther IPOs were made in 2004 and 2005 whereby a total of 50 million shares were sold.

"This will enable us to raise funds to broaden our investment portfolio especially in mining, construction, energy, finance and tourism sectors," Mr Mosha said.

The new IPO costing Sh300 per share came amid a split in the company's 50 million fully paid shares whose price was Sh689 million by March last year.

"The minimum number of shares that can be applied for the share issue is 100 shares and we intend to sell to all districts in the country," Mr Mosha said.

Earlier, the company's investment committee chairman, Mr Reginald Mengi, said the currently Tanzanian economy is highly dominated by private foreign companies and there is a need for Tanzanians to join hands to compete with them.There is no sustainable private sector unless the participation of local people," Mr Mengi said during the event.

Nicol is an investment company that mobilises capital from the Tanzanian general public and invests the same in the profit making commercial enterprises for the benefit of shareholders.

The company was founded on the principle that socio-economic transformation and eradication of poverty in Tanzania will only be possible through effective participation and greater control of its own people.





Source: Copyright AllAfrica