Maendeleo Bank to become the first enterprise to list on growth market

By The guardian reporter

Moremi Marwa, DSE Chief Executive Officer

The Dar es Salaam Stock Exchange (DSE) has said the new Maendeleo Bank will list its shares on the bourse by end of this month, becoming the first institution to conduct its activities under newly established enterprise growth market (EGM).

Speaking to this paper in an emailed
interview, the DSE Chief Executive Officer, Moremi Marwa, said already the Capital markets and Securities Authority (CMSA) and Exchange has approved their capital raising through initial public offering (IPO) which is now open.

“We expect that they will list their shares on the Dar es Salaam Stock Exchange by end of this Month,” said Marwa.

According to the bank’s Managing Director Ibrahim Mwangalaba, the bank is off-loading eight million shares through the IPO, with a green-shoe option that gives the underwriters the right to sell to investors more shares than originally planned by the issuer.

The IPO opened mid last month and is expected to close this month, with the share price pegged at 500/- in multiples of 10. The allotment will be done by the directors in consultation with the Nominated Advisor and in case of over subscription; allocation will be on pro-rata basis.

He said CMSA has approved the prospectus for the IPO, with the listing scheduled for this month.
He urged Tanzanians to buy shares which would be sold on the bourse in order to own part of the institution.
He said the bank was established to empower Tanzanians and enable them create a culture of saving.

Experts say coming of the bank into local market would help bridge gap of financial access among Tanzanians which now stands at 12 percent.

They say growth of financial sector is a clear indicator that Tanzania is moving in a good direction
Maendeleo Bank is a public limited liability company incorporated in 2011 as a regional bank with head offices in Dar es Salaam.

It was established to serve the unbanked population, low income earners especially women and youth, but it also servers SMEs, large companies and SACCOS. According to the bank’s financial plan, the institution is projected to make profit of 288m/- in its third year and increase it to 776m/- in the fourth year.

The current shareholders holding, above 5 per cent are United Evangelical Mission 14.5 per cent, ELCT – Eastern and Coastal Diocese 9.2 per cent and Church Institutions 7.7 per cent. Payment of dividend will be in line with shareholders expectation and will be subject to their approval. Amount of dividend payable will depend on the level of profit, capital expenditure requirements and overall financial performance
Up to moment more than 500 customers have opened account with the bank, which intend to reach more through consortium of Umoja Swith ATMs.

SOURCE: THE GUARDIAN