Regulator gives the green light for Talgwu’s Sh6bn share sale
What you need to know:
- Talgwu which is the trade union for local government workers in Tanzania is targeting to sell six million shares at Sh1,000 per share in order to raise Sh6 billion for its newly established microfinance institution.
Dar es Salaam. The Capital Markets and Securities Regulatory Authority (CMSA) said it has approved an application by Tanzania Local Government Workers Union (Talgwu) Microfinance to raise capital through Dar es Salaam Stock Exchange (DSE).
Talgwu which is the trade union for local government workers in Tanzania is targeting to sell six million shares at Sh1,000 per share in order to raise Sh6 billion for its newly established microfinance institution.
CMSA public relations manager Charles Shirima confirmed to The Citizen that the offer will last for six months as it was opened on July 11 and will be closed in December.
The initial public offering (IPO) targets to sell 49 per cent of the institution’s shares to its members while the majority 51 per cent will remain under their trade union.
Talgwu Microfinance Plc managing director Jackson Ngalama said the IPO is targeting to hook up all 58,000 Talgwu members to be part of the company shareholding.
He said each trade union member is allowed to hold a minimum of 50 shares. He said the aim of establishing the microfinance was to offer financial services to the trade union’s members, who mostly are working at district, municipal and city councils.
“Our institution is offering loans at the maximum rate of 15 per cent and borrowers can repay loans ranging from 36 to 60 months,” he said. Meanwhile, CMSA has said that the public is now aware of the capital market as there has been a tremendous increase of both products and number of local investors. Some of the products entered into the market this year were Tanzania Mortgage Refinance Company Limited (TMRC), NMB Bank Plc Medium Term Note (MTN), TCCIA and Nicol.
