Precision Air Services PLC

Precision Air lists on the Dar es Salaam Stock Exchange

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Precision Air Services PLC

Last Update: 2012-03-02 18:26:51

Dar es Salaam 21st December 2011. Precision Air PLC has today listed on the Dar es Salaam Stock Exchange following the recent conclusion of its Initial Public Offering. The listing took place in a colorful ceremony at the Dar es Salaam stock Exchange (DSE) premises and was officiated by the Minister for Transport Hon. Omari Nundu and attended by the airlines founder and Chairman Mr. Michael Shirima, DSE’s Chief Executive Officer Mr. Gabriel Kitua, as well as officials from the Capital Markets and Securities Authority (CMSA). Speaking during the listing Minister for Transport Hon. Omar Nundu commended the Precision Air for being on the forefront of the airline industry in Tanzania and for its achievement in listing on the DSE.
“Precision Air is the designated second national carrier in Tanzania with an overwhelming market share. I’d therefore like to reassure stakeholders in the airline industry that the government is eyeing to reaffirm better policies as well as improve infrastructure so as to produce healthy competition in the market,” the minister said. Speaking at the ceremony, Mr. Shirima said; “First and foremost, thank you, CMSA and DSE for guiding us tirelessly and diligently to the very end. We look forward to continue working together in order to achieve the common objective of enhancing share holder value in the company; especially for the new share holders.” A total of 7,056 (Seven thousand fifty six) investors took part in the IPO which commenced on 7th October and ended on 4th November 2011. “This is a big number of new share holders who have taken a stake of 16% in the company. This now means 58% of the company is owned by Tanzanians, 41% Kenya Airways and 1% by other nationals. The anchor share holders, being Kenya Airways and myself,” said Mr. Shirima. Mr. Shirima also thanked and congratulated the new shareholders of Precision Air. “Most important of all partners though are the new investors who, with effect from today’s event have become share holders of the airline. I say congratulations and thank you for the confidence and pride you have given the airline.” He added. Meanwhile, the Chief Executive Officer of the Dar es Salaam Stock Exchange Mr. Gabriel Kitua said that Precision Air listing makes it the 18th company to be listed on DSE, whereas DSE becomes the second leading stock market in East Africa after Kenya. The airline raised Tshs. 12 billion (i.e. subscribed by 43.18%) most of which were taken up by Tanzanian nationals both retail investors and corporate entities as intended by the company. Earlier the airline presented to the regulators, its financial plan outlining how the proceeds will be invested in the airline as well as how the funding gap will be filled so as to facilitate the achievement of the airline’s strategy. Apart from raising capital to facilitate expansion, the airline aimed at extending ownership to the public primarily to Tanzanian nationals. “We are thankful to all those who participated as evidenced by the large turnout. We are pleased that the IPO attained both objectives (raising capital and extending ownership), said the Precision Air Group Managing Director and CEO Mr. Alfonse Kioko. The number of Tanzanian participants is a true testimony of the trust and confidence that the public has in the company. We take this opportunity to reaffirm our commitment to the growth of the company. The Airline’s fleet expansion program and network growth strategy remains on course. Precision Air has also embarked on a vigorous customer care program to improve our services.