TCCIA Investment Company Limited (TICL) net profit has declined by 60 per cent on the back of income decline. The company, which its initial public offer (IPO) struggled to reach its goal, posted a net profit of 154.17m/- last year down from 394.92m/- of the previous year, according to a financial statement.
This came after income went down to 1.08bn/- from 1.36bn/- in 2015 despite maintaining expenses in the corresponding period. The statement shows that the profit decline ate earning per share which dropped by over half to 13.55 per cent from 34.72 per cent.
This also affected dividend yield to suffer a heavy drop and settle at 5.42 per cent from 13.89 per cent. The investment wing of Tanzania Chamber of Commerce, Industries and Agriculture (TCCIA) in its IPO raised 1.0bn/- only which is 2.3 per cent of the 45bn/- target.
The firm, which was expected to be listed on Dar es Salaam Stock Exchange (DSE) in April, this year, asked for IPO extension to the regulator, the Capital Market and Securities Authority (CMSA). TCCIA had put at offer 112,500,000 ordinary shares at 400/- each.
This represents 61.3 per cent of the issued share capital of 183,592,400 ordinary shares of a nominal value of Sh 20 each. From the IPO proceeds, the company hopes to diversify into the real estate industry, with target on Dar es Salaam, Dodoma, Mtwara and Tanga.
It also plans to venture into microfinance, agro-processing as well as invest part of it in government securities.