Since 1998 Eleven Tanzanian companies have been listed on the Dar es salaam stock Exchange(DSE) and other five Kenyan companies cross listed on the market hence bringing the number of trading companies to Sixteen. Most of Tanzanian listed companies have performed so well in one decade and still they are showing a great prospect in the future. With companies like Tanga Cement Company(SIMBA) have give return of 580% on capital gain and more than 100% in dividend payouts grossing to 700%.This is real wealth creation! Had you invested Tsh. 1,000,000 today you would be having an asset worth TZS 6.8 Million! and more than TZS 1 million in dividends payments. Other companies which have enormously performed well include TCC,Twiga and TBL. I used to belive that these great returns are entitled to reach guys but now i realize that I could've tapped these opportunities too! Anyway i know its Just the begining and i'm happy to have discovered this priceless apparent truth!
In my simple research I've discovered that Entrance at IPO level is much safer and according to DSE Data out of eleven listed companies only two companies have done not so well since being listed(TOL and NICOL) others have rewarded returns in hundreds percent!
Would you have invested TZS 1 million in every IPO in the past Ten years you will have garnered a lot of wealth! Actually the money will have Tripled to more than TZS 35 Million being capital gain & dividends paid to investors! I'm sure it will not have costed you much collecting a million for a great investment opportunity! Where is the money you raised for your colorful wedding? birthday? or graduation party? where is the money you squandered now! You could have built a great asset base with the little money you had or just by cutting a bit of your good time budget.I don't want to advice you to forgo your great moments but an element of caution should haunt you always so as to balance your present and future.
Nairobi stock exchange has more than Fifty(50) Listed companies. If Tanzania market(DSE) will pull herself to list that number then we have just started investing and we have Known the truth at the right hour.
There are some good friends, who don't like to think outside their box. They keep on criticizing stocks holding over real estate and other ventures. Anyway, swahili people have a say that, 'ukimuamsha aliyelala utalala wewe' i dont wanna wake you up buddy, just keep on. Can you buy real estate for TZS 1 million? Can you start a hussle free business for TZS 1 million? its definitely impossible unless you have that magical formula! But you can buy a piece a well run business with Products,Systems and Teams working around the clock for you to get your value. Thats why i keep on insisting on a broader approach rather than myopic one. My idiosyncrasy sometimes get over but i hope you will bear with me.
For investment fools, IPO stands for Initial Public Offer and it means the moment which companies invite the public to subscribe for ordinary shares before listing on the stock market. IPO comes when companies require to raise new capital or when investors or the government wants to reduce/offload her/his shareholding by cashing in on IPO. Most of the IPOs in Tanzania have happened because the government wanted to cut her investment in companies. However, fewer have been for raising additional capital.
Just see below inset for further information about the performance of Listed companies on the stock Market.
Lastly, i've come to realize that there are rich and supper rich guys in Tanzania and East Africa who have just gotten there genuinely and no one should ever dare to question their Fortune. These people have gotten rich just by knowing the truth earlier than you and me.Fortunately, we have discovered the secret and soon we will share the cake. Always remember that temperate value investors will champion over a long run.
by Emmanuel Akyoo
Epak Capital Limited.
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