TOL Gases Plc has successfully raised its full targeted amount in a rights issue, with subscriptions reaching 8.57 billion Tanzanian shillings against the planned 8.17 billion shillings, the company said in a public notice. The industrial and medical gases producer received applications for 14.88 million shares, exceeding the 11.50 million shares offered, representing a subscription rate of more than 129 per cent. The capital-raising exercise ran between September 17 and October 8.
The company undertook the rights issue to expand its carbon dioxide production capacity as the next phase in its growth strategy. Under the offer terms, existing shareholders were invited to purchase one new share for every five shares held at 710 shillings per share. Leonard Kitoka, the company's Chairperson, said the initiative marks an important transition from business recovery to a new phase of investment and growth. "Over the past five years, we have rebuilt a stronger and more resilient firm. The opportunity before us is to translate the progress into additional capacity. This initiative gives us the means to address a persistent supply gap, strengthen reliability and position the firm to serve growing demand in the country," he said.
Following the oversubscription, the Capital Markets and Securities Authority approved acceptance of applications totalling 8.17 billion shillings, matching the approved offer size. TOL Gases will refund 2.40 billion shillings representing applications that exceeded the approved amount. The refunds were scheduled for November 13. For savers and investors in Tanzania, the oversubscription signals shareholder confidence in TOL Gases' expansion plans and ability to address supply gaps in the industrial gases market.