Precision Air of Tanzania to raise US$17 million in IPO

Precision Air of Tanzania, hopes to raise US$17 million in an initial public offering next month after obtaining the go-ahead from the regulator for the share sale, its brokers have revealed.

Kenya Airways, which holds 49 percent of Precision Air.

Precision Air is Tanzania’s biggest airline and has set an IPO price of US$ 0.29 per share. Foreigners will be allowed to buy shares, which are expected to be listed on the Dar es Salaam Stock Exchange (DSE) on December 8.

The airline was founded by Michael Shirima in 1991. He is the current Chairman, and owns a 51 percent stake in the company.

The airline operates daily flights to several domestic and regional destinations.

After the IPO, Kenya Airways will hold a 34 percent stake, and the public will own a 30 percent stake in the airline.