DAR ES SALAAM — TOL Gases PLC has launched a TZS 8.17 billion rights issue as the industrial and medical gases producer moves to expand its production capacity amid rising demand from Tanzania and regional markets.
The company is offering 11.5 million new ordinary shares at TZS 710 each, with existing eligible shareholders entitled to purchase one new share for every five shares held as of September 14, 2026.
The offer opened on September 17 and will close at 4:00 p.m. on October 8, 2026. Subject to listing requirements, the new shares are expected to begin trading on the Dar es Salaam Stock Exchange on October 22.
Most of the capital raised will go towards a new carbon dioxide production facility, together with related infrastructure, logistics and operational requirements.
The investment comes as TOL says demand has begun to exceed the capacity of its existing production facilities, limiting its ability to fully supply some domestic and regional customers.
“This is fundamentally a capacity story,” TOL Managing Director Daniel Warungu said, pointing to the need for additional production capacity as the company pursues further growth.
The expansion follows a five-year period in which TOL says it has focused on restoring profitability and strengthening its operations. Company revenue recorded a 9.5% compound annual growth rate between 2020 and 2025, while EBITDA increased by 28% between 2024 and 2025.
The company is also expanding beyond carbon dioxide. TOL is preparing to commission a 13-tonne-per-day Air Separation Unit, which, alongside its existing seven-tonne-per-day unit, is expected to raise oxygen and nitrogen production capacity to approximately 20 tonnes per day by the end of 2026.
Distribution is another part of the expansion programme, with TOL increasing its fleet and establishing regional distribution centres in Arusha and Mtwara, alongside its existing centre in Mwanza.
TOL supplies industrial and medical gases to sectors including healthcare, mining, manufacturing, food and beverage and construction. Its products include oxygen, nitrogen, carbon dioxide, argon, helium and acetylene.
Board Chairperson CPA Leonard Kitoka said the fundraising marks a shift from rebuilding the company towards investing in additional capacity.
“The opportunity before us now is to translate that progress into additional capacity.”
For shareholders, the rights issue provides an opportunity to participate in the company’s expansion, although TOL has advised investors to review the full prospectus, including the applicable risks and terms, before making an investment decision.
The transaction is being advised and sponsored by Tanzania Securities Limited, while National Bank of Commerce Limited is serving as the receiving bank.
TOL said the investment forms part of its broader 2025–2029 growth strategy, with the company positioning increased production and distribution capacity to meet demand in Tanzania and neighbouring markets.
