Business

Maendeleo shares to trade on Dar bourse

Share Bookmark Print Rating
By DAVID MUGWE The EastAfrican

Posted  Saturday, September 28  2013 at  12:21

In Summary

  • The bank, which started operations at the beginning of this month, is currently selling shares to the public through an initial public offering (IPO) that began mid-August and concludes on October 15.
  • It is offering 8 million ordinary shares, with an option of accepting a further 1.2 million shares to make a total of 9.2 million shares at Tsh500 ($0.31) a share.
  • The lender is the first to list on the newly created enterprise and growth market (EGM) segment.
SHARE THIS STORY

Shares of Maendeleo Bank, a newly registered Tanzania lender, are expected to start trading at the Dar es Salaam bourse in the next three weeks, making the lender the first to list on the newly created enterprise and growth market (EGM) segment.

The bank, which started operations at the beginning of this month, is currently selling shares to the public through an initial public offering (IPO) that began mid-August and concludes on October 15.

Maendeleo Bank, which is majority owned by various church organisations, will be joining DCB, CRDB and NMB banks, whose shares are already trading on the Dar es Salaam Stock Exchange (DSE), but on the main board.

This is the first bank to sell its shares through an IPO in any of the four East African bourses this year, and will bring the number of listed companies on the DSE to 11.

“The bank intends to raise funds to enlarge its share capital, acquire the necessary technology and facilities for smooth running, enhance investor and the general public awareness and widen direct share ownership among Tanzanians and general public,” said Maendeleo Bank’s abridged prospectus.

The new bank will be 14.5 per cent owned by the United Evangelical Mission, 9.2 per cent owned by the Eastern and Coastal Diocese and 7.7 per cent owned by other church institutions.

The rest of the shareholding — 68.6 per cent— will be sold to investors through the IPO.

It is offering 8 million ordinary shares, with an option of accepting a further 1.2 million shares to make a total of 9.2 million shares at Tsh500 ($0.31) a share.

“The licence allows the bank to carry out banking business in Tanzania as a community bank operating in Dar es Salaam,” said BoT in a statement.

According to its prospectus, Maendeleo Bank, whose nominated advisor is Tanzania Securities Ltd, has projected losses for the first two years of operations then profits over the next two.

Mugabe Maasa, projects and programmes manager at the DSE, said that the bourse is this year expecting at least two more listings on the EGM segment — Swala Energy whose nominated advisor is also Tanzania Securities and Mwanza Community Bank, whose nominated advisor is ARCH Financial & Investment Advisory.

Uchumi Supermarkets, whose primary listing is the Nairobi Securities Exchange, is also expected to cross list its shares at the DSE, the Uganda Securities Exchange (USE) and the Rwanda Stock Exchange.

To be allowed to list on DSE’s new market segment, a company should be incorporated in Tanzania as a public company, have issued and paid up capital of at least Tsh200 million ($124,476), 20 per cent of which must be publicly held and the firm must provide a detailed profile including a feasibility study and a five year business plan.

One third of its board members must be non-executive directors and the company must have a nominated adviser at the time of listing.

1 | 2 Next Page»