Tanga Cement shatters rights issue record

Speaking during the launch of the rights issue yesterday, Capital Markets and Securities Authority (CMSA) chief executive officer, Mr Nicodemus Mkama, said the offer represented the largest value of rights shares ever issued in the history of the country’s capital markets.

“The last time a rights issue of this magnitude was conducted was in 2015 when CRDB Bank floated shares worth Sh150 billion,” he said.

Mr Mkama added that the transaction would enhance cement production efficiency and stimulate economic growth. He noted that it would also increase revenues and create fresh investment opportunities for both companies and ordinary citizens.

He called on other firms to take advantage of the opportunities available in the capital markets by offering shares to the public.

For his part, Tanga Cement managing director, Mr Alfonso Velez, said the rights issue would be available for subscription from today (September 29, 2025) until October 24, 2025, at a discounted price of Sh1,600 per share.

“The discounted price is valid for approximately one month, after which the shares will revert to the initial price of Sh2,590 per share.

The discount is meant to attract as many investors as possible — from institutions to individuals — thereby expanding market participation and strengthening confidence in Tanzania’s equity markets,” he said.

Mr Velez stressed that the move was aimed at improving operational efficiency to keep pace with the growing cement demand locally and in export markets.

Meanwhile, head of financial advisory, at advisory company iTrust Finance, Mr Frank Bunuma, assured that all legal requirements for the rights issue had been duly met and approved by the relevant authorities.