TCCIA Investment Company Limited (TICL) expectations to achieve its desired goal this year were cut short after the company recorded a net profit of Tshs 154.17million last year. This was such a massive significant decline from its initial net profit posted on the hitherto year as Tshs 394.92million.
The 60 per cent decline came on the back of income decline which went down to Tshs 1.08billion from Tshs 1.36billion 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 Tshs 1.0billion only which is 2.3 per cent of the Tshs 45billion 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 Tshs 400 each.
This represents 61.3 per cent of the issued share capital of 183,592,400 ordinary shares of a nominal value of Tshs 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.