Tanzania's Precision Air plans to raise around 28 billion shillings (USD$17.1 million) in an initial public offering next month after getting regulatory approval for the share sale, its brokers said on Thursday.
Subscriptions to the issue of 58,841,750 shares run from October 7-28, said Orbit Securities, sponsoring broker for the IPO.
Part-owned by Kenya Airways, which holds 49 percent, Precision is the east African country's biggest airline and has set an IPO price of 475 shillings per share.
Orbit chief executive Laurean Malauri said foreigners would be allowed to buy the shares, which are expected to be listed on the Dar es Salaam Stock Exchange (DSE) on December 8.
"Precision Air has a local market share of around 65 percent and we expect the IPO to be fully subscribed... There is a lot of appetite in the market," he said.
Precision Air Chairman Michael Shirima, who owns a 51 percent stake in the airline, started the company in 1993, offering charter services with a five-seat Piper Aztec plane.
The firm operates daily flights to several domestic and regional destinations.
Existing shareholders will see their stakes diluted after the IPO.
"The local investor will remain, with 35.52 percent of the shares, Kenya Airways will hold 34.13 percent and the public will own a 30.35 percent stake," said Malauri.