TANGA Cement PLC has achieved a landmark success in the country’s capital markets after its 203.74 bn/- rights issue was fully subscribed, marking a 100 percent success rate.

Recently, the company listed 127,342,090 new shares on the DSE, marking a significant milestone for both Tanga Cement and Tanzania’s capital markets. The successful capital raise signals strong investor confidence in the
 industrial sector.

 Emmanuel Nyalali spoke on behalf of the DSE chief executive officer  saying the full subscription reflects renewed trust in Tanga Cement’s restructuring efforts and demonstrates the growing capacity of Tanzania’s capital markets to support corporate recovery and long-term financing.
 
 He said that the rights issue follows a pattern of strong equity market performance, with several IPOs and rights issues recently oversubscribed. Nyalali praised the Capital Markets and Securities Authority (CMSA) for
 its regulatory role and initiatives to develop the market.

He also acknowledged I-Trust and the DSE’s registrar services subsidiary for facilitating the transaction. According to him, the success highlights the increasing depth of Tanzania’s capital markets, with both institutional and retail investors participating more actively.

He noted that companies can now rely on the stock market for both equity and bonds as alternative financing options. Tanga Cement Managing Director Alfonso Velez described the full subscription as a major step in the company’s transformation journey.
 
 He said the funds will be used to expand production capacity, strengthen operations, and support growth as demand for cement rises in Tanzania’s construction and industrial sectors. Velez added that the company has undergone significant changes over the past two years and is now on a stronger footing, with improved performance and clear future prospects.
 
 He thanked CMSA, I-Trust, NSSF, and shareholders for their support, calling the rights issue the beginning of renewed growth for Tanga Cement. CMSA Chief Executive Officer, Nicodemus Mkama, said the transaction
 set a historic record as the largest rights issue ever undertaken in Tanzania, surpassing the 152 bn/- raised by CRDB Bank in 2015.
 
 He noted that the listing increased Tanga Cement’s market capitalization by 44.82 percent, from 454.61 bn/- to 658.35 bn/-, and expanded the number of listed shares from 63 million to 191 million,
 significantly enhancing market liquidity.
 
 Mkama explained that the listing allows investors to sell shares when needed, strengthens price discovery, and opens opportunities for new investors to participate in trading while earning dividends from their
 investments.

The successful rights issue marks a major vote of confidence in Tanga  Cement and underscores the growing maturity of Tanzania’s capital markets, providing companies with reliable avenues for financing and
 investors with greater opportunities to engage in the market.