The Dar es Salaam Stock Exchange IPO: Small is Beautiful

When markets are moving sideways, like they have in Africa in recent months, it seems the best way to make money in stocks is to own a stock exchange. It’s certainly the case in Tanzania. The nation’s Dar es Salaam Stock Exchange (DSE) offered its own shares to the public in May in a bid to raise roughly $3.75 million worth of capital for growth and expansion.

Response to the IPO was enthusiastic to say the least. Investors applied for nearly four times the number of shares on offer. The 377% oversubscription persuaded the DSE’s board to execute its green shoe option, allowing it to raise proceeds of the offer by 10%. And when the stock debuted this week, its share price soared 100% in heavy trade volume.

Read more: Africa Capital Group LLC Small is Beautiful: The Dar es Salaam Stock Exchange IPO – Africa Capital Group LLC