HABARI LIMITED PLANS TO RAISE TSHS 5.0 BILLION THROUGH IPO
Habari Limited, the Arusha based internet service provider is planning to raise about Tshs 5.0 billion through public offering (IPO). The company...
Habari Limited, the Arusha based internet service provider is planning to raise about Tshs 5.0 billion through public offering (IPO). The company will list on the Dar es Salaam Stock Exchange (DSE) next month, a mandatory requirement for telecoms to list at least 25 per cent of their shares on the local market.
The firm which began as a cooperative society some 20 years ago, wants to start offering its share to the public next month or early next year subject to prospectus approval by market regulators.
According to the Habari Limited Business Manager, Kilusu Mattasia, before the end of this month, they will submit the document to the Capital Market and Securities Authority (CMSA).
“We want to go for IPO on the onset in November, but not December as it does not augurs well with end of the year festivals. If we fail to start next month then we will do so early January, next year, “said Mr Mattasia, in an interview from Arusha.
The manager said it was too early to tell price per share and the amount of share to be put on offer until they get a full approval from CMSA.
He said the money raised from the IPO would be used for geographical expansion and extension of internet services through LT, modems, to low earnings individual. “We have four physical offices in Arusha, Kilimanjaro, Mwanza and Dodoma - we want to go to other regions as well,” he said.
Habari Limited has the largest fibre network cable in Arusha and wants to replicate the same to other regions.
“We also want to provide quality internet services via LT platform, to as low Tshs 10,000 a month, which is affordable by many,” Mr Mattasia said. The IPO fund will also enable them to strengthening and accelerating their software development. The firm has already developed payroll software, and Account System will be launched soon.
According to reports, Habari Limited has an annual turnover of over Tshs 2.0billion. The firm established in 1994 wants to take advantage of incentives offered in many emerging markets to go public by becoming the first tech company to list on DSE.