Investors’ response to an initial public offer (IPO) floated by Tanzania Portland Cement Company (TPCC) a month ago has raised more capital that was needed by management. While the management wanted to raise 23.4bn/- worth of capital from the public through the sale of authorized 53,975,900 shares, an overwhelming 212,688 923 shares were sold realizing 92.5bn/- by the end of book closure.
The crushing response means close to 70bn/- would have to be refunded to unsuccessful subscribers effective today this year, according to regulations defined in the company’s prospectus. The public reaction means this recent flotation translates to three times more capital obtained beyond the statutory amount registered in the prospectus. Shares sold previously belonged to the government after partial privatization of the cement factory.