According to interim chair Emilian Busara, the net profit of the public company increased by 46 per cent to 574m/- compared to the 395m/- that was reported in the same third quarter in 2015. During the previous quarter that ended in June 2016, DSE recorded a net profit of 286m/-.
Busara said the expected growth in revenue and profitability will come from increased market and investment activities. Top among them will be the listing of mobile companies, which are supposed to offload 25 per cent of their shares before year end.
“The DSE expects continued growth backed by trading, listings and investment activities,” the chairperson notes in the bourse’s statement of financial position for quarter ended September 30, 2016.
Capital markets experts say the listing of mobile firms will not only boost the current 20trn/- market capitalisation of the stock mart but also jack up its liquidity in terms of market turnover. Consequently, DSE will greatly benefit from increased trading activities and the new market depth, which is expected to double to about 40trn/-.
Currently there are 25 listed companies at the bourse after the self-listing of DSE on July 12, 2016. The exchange’s latest quarterly update says that total turnover for the third quarter of 2016 recorded a 10 per cent increase to 111bn/-.
In the previous quarter, the turnover was 102bn/-. The volume of shares traded increased by one per cent from 33.4 million to 33.6 million shares during the two quarter.
“In the coming weeks, we anticipate Initial Public Offering (IPO) activities from both the banking and investment sectors as well as the telecommunication sector,” CEO Moremi Marwa (picrured) notes in the update.
DSE’s revenues rose to 1.5bn/- in the third quarter compared to 1.2bn/- generated during the same period in 2015 and 1.1bn/- in the second quarter of this year.
Investment income amounted to 477m/- in quarter three compared to 73m/- in the same quarter last year and 129m/- that was generated in quarter two of 2016. Listing fees during the three periods were 439m/-, 411m/- and 431m/- respectively.
Total expenses for the three respective periods were 889m/-, 801m/- and 856m/-.
“DSE Plc recorded revenues of 1.5bn/- in the quarter ending September 30, 2016. This is a 22 per cent growth compared to the same quarter in year 2015 and 35 per cent increase when compared to the previous quarter ending June 2016,” interim chair Busara notes in the third quarter report.
The bourse, which became operational in 1998, was incorporated in 1996 as a private company limited by guarantee (a non-profit making body). Last year, the stock mart was demutualised and the privatisation exercise changed its registration status from being an entity limited by guarantee to one limited by shares.
In May this year, DSE launched its IPO of 15 million ordinary shares at 500/- each. The IPO ended with the bourse raising 35.8bn/- from more than 3,000 investors, which was equivalent to 377 per cent in excess of the targeted capital.
Following the oversubscribed IPO, the bourse exercised the green shoe option of 35 per cent to take up an additional 2.6bn/-. After exercising the option, the total capital raised from the IPO amounted to 10.1bn/-.
The bourse listing was undertaken in July.