PrecisionAir to sale Shs. 2.7 Billion shares

By PAUL WAFULA pwafula@ke.nationmedia.com
Posted Friday, September 2 2011 at 20:52


Precision Air, the Tanzanian airline partly owned by Kenya Airways, will sell part of its shares to the public in October to raise Sh2.7 billion to support its fleet expansion.The airline will list at the Dar es salaam Stock Exchange.


The initial public offering will see both Kenya Airways, currently holding 49 per cent stake and Tanzanian businessman Michael Shirima, with 51 per cent stake, dilute their shares to 34.2 per cent and 34.6 per cent, respectively. A total of 55 million new shares will be issued.


The public offering has had two false starts, in late in 2010 and in April 2010, in what the management says were delays in getting approvals from regulatory bodies in Tanzania.


Final approval

“We now have the greenlight from our stock exchange and, with the final approval from (Tanzania) Capital Markets Authority expected in two weeks, we should be able to go public by October,” said Mr Alfonse Kioko, the airline’s managing director.


The Kenya Airways management says the deal was approved in July last year in readiness for the additional issue of shares to help Precision increase its fleet.

More info and source: Daily Nation: - Business News |Airline to sell Sh2.7bn shares

bagamoyo said:

By PAUL WAFULA pwafula@ke.nationmedia.com
Posted Friday, September 2 2011 at 20:52


Precision Air, the Tanzanian airline partly owned by Kenya Airways, will sell part of its shares to the public in October to raise Sh2.7 billion to support its fleet expansion.The airline will list at the Dar es salaam Stock Exchange.


The initial public offering will see both Kenya Airways, currently holding 49 per cent stake and Tanzanian businessman Michael Shirima, with 51 per cent stake, dilute their shares to 34.2 per cent and 34.6 per cent, respectively. A total of 55 million new shares will be issued.


The public offering has had two false starts, in late in 2010 and in April 2010, in what the management says were delays in getting approvals from regulatory bodies in Tanzania.


Final approval

"We now have the greenlight from our stock exchange and, with the final approval from (Tanzania) Capital Markets Authority expected in two weeks, we should be able to go public by October," said Mr Alfonse Kioko, the airline's managing director.


The Kenya Airways management says the deal was approved in July last year in readiness for the additional issue of shares to help Precision increase its fleet.

More info and source: Daily Nation:*- Business News*|Airline to sell Sh2.7bn shares

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just asking how much will 1 share cost? and who may stand over monitoring my share not to undergoing falling and become bankrupt?? I am Tanzanian diasporal in overseas. Please help out as long i may just a bit contributing to my country of birth economy growth.

Kwa sababu wako na kenya airways...lakini bado hawa jamaa hawana record nzuri katika kutoa gawio....Michael Shirima ni kiini macho......

Buswelu said:

Kwa sababu wako na kenya airways...lakini bado hawa jamaa hawana record nzuri katika kutoa gawio....<b>Michael Shirima </b>ni kiini macho......

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hebu elezea vizuri basi watu wasiingizwe chaka.

Yap!! maneno hayo

Husninyo said:

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<br />
hebu elezea vizuri basi watu wasiingizwe chaka.

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Yap!! maneno hayo kaka

Malyamungu said:

Yap!! maneno hayo kaka

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yap. Ngoja tusikilizie dada.

Kama wapo na wakenya, No Thanks

biashara ya anga ni ngumu sana sio kwa tanzania tu kwa hiyo kama watanzania wanataka kuwekeza huko kwa kununua hizo share inbidi wawe makini sana sana,especial kwa biashara inayochipukia kama precionair inaonyesha hawana hela kwa kipindi chote walichofanya biashara sasa inabidi wa issue share ili wapate hela ili kuwekeza kwenye hiyo biashara,ukiangalia owners wenyewe kenya airways na shirima kama wangekuwa wanapata faida nzuri wangewekeza wenyewe kwani nani asiyependa kupata gawio zuri,yasije yakawa kama kampuni ya nicol tu hayo ni mawazo yangu tu

Dear Tanzanian,

Investing in shares is a very risky business (thus demanding higher return), technically the co. has no any legal obligation to pay dividend, your capital is non-refundable in any case. Dividend depend on Co. performance and decision by the board of directors.
Some hints to help u make a decision (especially if u want to hold shares for a long time).
-The future performance of the Co should be promising
-The b/directors should be a responsible board (the way I see, Mr.Shirima & KQ will retain big share and will dictate terms)
-The regulator(CMSE) should be a strong body to oversea the market (I doubt its credibility + our laws & regulations)
-The mkt should be liquid for ur share to appreciate when their is good news about the Co.
-The laws should protect investors by avoiding illegal speculators and inside jobs (I also doubt on this)
For short term investors, i suggest buy the shares during the IPO period, then quickly sell your shares few days when the secondary markt starts (i.e on DSE). This will profit u a lot as it is widely known that shares do experience 1st day high returns.
But also mind u, place a big order during IPO bse many will rush for it and allotment will be implemented (money will be returned).
For those expecting to hold shares for a long period, this is good investment (ceteric paribus).

Note: People like Dividend, but dividend technically does not increase your return, you can increase your return by selling shares when the price goes up (capital gain), this pays u more than dividend. But people value dividend more than capital gain (psychological/mental accounting).
Nitakuja na maelezo zaidi nikijaliwa muda.

Malyamungu said:

just asking how much will 1 share cost? and who may stand over monitoring my share not to undergoing falling and become bankrupt?? I am Tanzanian diasporal in overseas. Please help out as long i may just a bit contributing to my country of birth economy growth.

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Man dont be scared, if you are not satisfied with PW Shares why dont you invest in other companies trading at DSM Stock Exchange? prefarably TBL, TCC and Simba Cement? if you have money its better to take action now, you can even use brokers such as Orbit Securities, they can give you a proffessional advice.

You can use the website below to get more information DSE:- Market Partcipants / Brokers and Capital Markets & Securities Authority - Tanzania

All the best

maskin said:

biashara ya anga ni ngumu sana sio kwa tanzania tu kwa hiyo kama watanzania wanataka kuwekeza huko kwa kununua hizo share inbidi wawe makini sana sana,especial kwa biashara inayochipukia kama precionair inaonyesha hawana hela kwa kipindi chote walichofanya biashara sasa inabidi wa issue share ili wapate hela ili kuwekeza kwenye hiyo biashara,ukiangalia owners wenyewe kenya airways na shirima kama wangekuwa wanapata faida nzuri wangewekeza wenyewe kwani nani asiyependa kupata gawio zuri,yasije yakawa kama kampuni ya nicol tu hayo ni mawazo yangu tu

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Mkuu Kila Biashara ni Ngumu

Kuna kupata faida at the same time hasara, sioni sababu hata kidogo kwanini uwe na mashaka,Hawa jamaa wanajitahidi tena saana, naamini kama hili shirika lisingekuwepo ingekuwa ni aibu kwa taifa nzima, iko wapi ATC? kumbuka wakianza kuuza share zao DSE hawatadhubutu kufanya ujinga kwani wanatakiwa wafuate sheria na taratibu, na kwa jinsi hali ya soko ilivyo hawa jamaa wana future nzuri saana.

Kinachotuangamiza Watanganyika wengi ni uoga usiokuwa na maana kabisa, kumbuka hawa jamaa walichukua mkopo mkubwa CITY BANK wakaweza nunua ndege zaidi ya 8 mpya na naamini wamesharudisha mkopo wote, hii ya kukusanya mkopo kwa kuuza share ni kitu cha kawaida kabisa kwa ulimwengu wa leo.

wewe usiogope unaweza nunua share zako unakaanazo bei ikipanda unaziuza unafanya kitu kingine kumbuka kuna walionunua share za TBL kipindi hicho bei ilipokuwa nzuri waliziuza na kuweza kujijenge nyumba nzuri tuu, huu ni uwekezaji mzuri kuliko hata kuweka pesa bank

Another Clue about IPOs

It is widely known that airline industries rely heavily on debt and not equity (this is the practice of this industry because of their reliable fixed assets). For developed markets, announcing to issue equity signal a bad news. It mean the co is no longer optimistic about its future operation and cash flows to service the debt, so they are opting for cheap source of finance (issuing shares).
Is this the case for PW? As an investor u can ask ur self such qns and make an informed decision.

Malyamungu said:

Yap!! maneno hayo kaka

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Husninyo said:

yap. Ngoja tusikilizie dada.

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Husninyo kuwa mpole tu dadangu naona jamaa kakuuzi kukuita "kaka" nawe ukaamua kulipizia kumwita "dada", ingawa anaweza kweli akawa ni mdada. Tatizo ni haya majina yetu ya bandia hapa yasiyoonyesha jinsia zetu labda tu kwa wale walioweka avatar zenye kuonyesha jinsia zao. Ni kwa msomaji wa mara kwa mara hapa ndo anaweza kujua jinsia za baadhi ya members kutokana na michango yao kwenye majukwaa mbalimbali

Tuna kila sababu ya kuwa waoga na kampuni za kiswahili kwani zote zilizokuwa listed DSE zimewaliza wananchi tokea TOL mpaka NOCOL!! Uwezo wa REGULATOR wa soko letu la hisa ni wa mashaka na hii inapelekea DSE yaani soko la hisa kutofanya vizuri ingawa INTERGRITY ya viongozi wa bodi ya regulator [ Chairman Dr. Rashid of RADAR scandal fame] pia inachangia performance ya soko hasa to the informed clientele. CEO wa regulatory authority has also overstayed; the aothority needs to be revamped.

Mimi nasubiri kununua ikulu itakapouzwa na mafisadi muda si mrefu bada ya kumaliza kuuza maliasili zote za nchi yetu.

Jsaudi said:

Mimi nasubiri kununua ikulu itakapouzwa na mafisadi muda si mrefu bada ya kumaliza kuuza maliasili zote za nchi yetu.

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Dah; imeshafikia huku!

Jsaudi said:

Mimi nasubiri kununua ikulu itakapouzwa na mafisadi muda si mrefu bada ya kumaliza kuuza maliasili zote za nchi yetu.

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Angalia usije suburi kama yule fisi aliyekuwa akifuatilia mikono idondoke aichukue mpaka akastukia jamaa anatinga ndani bila kudondosha mikono yake!

Wakuu, hakuna mwenye uwezo wa kufanya stock price valuation bila kuona Balance Sheet ya Precision Air. Wale ambao mnacopy analyst kwenye website mbali mbali ambao wanasema airline company zina high debt to equity ratio mnaweza kuwa mnamislead watu sababu Tanzania/Africa business ni tofauti na west ambapo American Airlines most of their assets ni lease to own assets, matokeo yake wanakuwa kwenye heavy debt, storry inaweza kuwa tofauti kwa Precision.

I wont think twice to own precision and here are the reasons: 1. Airline industry in Tanzania bado hajawa saturated na Precision sababu wamekuwa kwenye game kwa muda wana chance ya kudorminate Tanzania Market. Hivyo future cash inflow yao bado ni positive, so dividend payout ni feasible. 2. Partnership with many International major Airlines kwa kutumia either Nairobi hubs, KLM, British and many zinaweza kusave cost na kukolect small amount of fee kwa kushare route na Precision hii itaiongezea Precision activities. 3. Tanzania economic growth, uchumi wa Tanzania unaendelea kukua katika sector na areas mbali mbali, hivyo more route zitaongezeka in the future.

Again, ili kuwekeza kwenye hii kampuni ni lazima tuweze kuona some kind of financials. Lakini I will be on top of the list kununua shares.