First Tanzania firm lists on stock exchange
Malawi’s neighbour, Tanzania, this month announced its first Initial Public Offer (IPO)—the public offering of shares, by an energy company that will see the public benefit from the purchase of about 9.6 million ordinary shares.
Against a booming extractive industry—gas, oil and minerals—in the region, there has been debate on the need for local participation in the sector.
Swala Energy, a company with operations in Kenya, Zambia and Tanzania, became the first oil and gas company to list on the Dar es Salaam Stock Exchange, with government authorities lauding the move, noting that locals would be given an opportunity to participate in the oil and gas business.
According to a press statement, Swala Energy is offering the shares from June 9 to July 4 2014.
Swala chief executive officer David Ridge is quoted in the press statement as saying that the official launch of the IPO is a great step for Tanzania and its people.
Ridge noted that investing in oil and gas shares is a means for economic diversification for any individual and it allows interested parties to own a stake in the fast-growing business.
