EABL mini-IPO oversubscribed -broker

BY BUSINESS REPORTER

THE sale of East African Breweries Ltd's (EABL) 20 percent stake in SABMiller's Tanzanian unit was "substantially oversubscribed," the sponsoring broker for the placement said on Tuesday, a month ahead of formal results.

"The sale of EABL's shares in Tanzania Breweries Ltd (TBL) was substantially oversubscribed ... the actual figures are still being compiled," Laurean Malauri, chief executive of Orbit Securities, lead adviser and sponsoring broker for the share sale said.

"There has been very positive interest in TBL shares after investors looked at the economic fundamentals and balance sheet of the company," said Malauri.

The 121.51 billion shilling ($73.1 million) placement was launched on the Dar es Salaam Stock Exchange (DSE) last month. The formal announcement on final results for the placement of 58,985,693 shares in TBL will be made on Jan. 6, Malauri said.

Orbit Securities said the shares were sold at a 12.4 percent premium.

TBL controls about 70 percent of the beer market in Tanzania.

The oversubscription of TBL shares comes after Tanzania's Precision Air sold less than half its initial public share offering. Brokers said Precision's under subscription was caused by investors who were keeping their cash for a share placement from TBL.