Precision Air to use funds from IPO for route and fleet expansion

Precision Air plans to use the money raised from its IPO to finance the carrier’s route and fleet expansion plans.  The carrier hopes to raise TZS28 billion (USD17.1 million) from the rights offering. 
Precision Air, the largest carrier in Tanzania, has 11 aircraft in service.

The the money raised from the IPO would largely be used to finance the airline's fleet and route expansion plans.

"Much of it will go to expansion by acquiring more aircraft and acquisition of spares, which are critical for the operation of the airline," Alfonse Kioko said, adding that he expected the IPO to be oversubscribed, Reuters reports.

The airline currently operates flights to Kenya, South Africa and Comoros together with its domestic routes. The airline plans to expand to Southern Africa, West Africa before moving towards Middle East and Asia. Quite an ambitious expansion plan for tanzania's privately owned airline that was founded by Tanzanian entrepreneur, Michael Shirima who owned 51% of Precision Air before the IPO.
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