A trader looks at a screen at the Dar es Salaam Stock Exchange in 2010.
This was before July this year when the bourse deployed a wide area
network (WAN) that allows brokers to trade from their offices instead of
going physically to the trading floor. Photo/FILE
NATION MEDIA GROUP
By Alawi Masare
Posted Wednesday, November 6 2013 at 19:49
Posted Wednesday, November 6 2013 at 19:49
In Summary
- Maendeleo Bank’s counter at the Dar es Salaam Stock Exchange (DSE) on Wednesday remained quiet after going up by 20 per cent on its debut on Tuesday
- No trades were registered on the counter although there were bids for 2,000 shares which were not filled by the close of the second day of trading after the new bank listed its shares on the bourse
Maendeleo Bank’s counter at the Dar es Salaam
Stock Exchange (DSE) on Wednesday remained quiet after going up by 20
per cent on its debut on Tuesday.
No trades were registered on the counter although
there were bids for 2,000 shares which were not filled by the close of
the second day of trading after the new bank listed its shares on the
bourse.
“When the session was closed CRDB counter had
515,500 shares on bid…Maendeleo counter had 2,000 shares on bid at
Tsh600 ($0.37) per share,” said DSE’s market report on Wednesday.
The new bank offered eight million shares with a
green shoe option of 1.2 million shares at Sh500 each but the share hit
the bourse at Sh600 on listing the DSE’s Entreprise Growth Market (EGM).
The lender, which became the first to list on the
newly created enterprise and growth market (EGM) segment, was selling 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.
On Tuesday, the bank which became the twelfth
Tanzanian company and the eighteenth firm overall to be listed at the
bourse, registered two deals worth Tsh120,000 ($75) for a total of 200
shares.
Ibrahim Mwangalaba, Maendeleo Bank’s managing
director said all 9.2 million shares were subscribed meaning that the
bank managed to raise Sh4.6 billion for its capital expansion.
It is owned by the United Evangelical Mission, the
Eastern and Coastal Diocese and other church institutions but the bulk
of it was sold to other investors through an initial public offer.
“It’s a good beginning showing that the shares are
in demand. It’s a sign of good future,” said Moremi Marwa, chief
executive officer, DSE.
According to its prospectus, Maendeleo Bank, whose
nominated advisor is Core Securities, has projected losses for the
first two years of operations then profits over the next two.
Mwanza Community Bank (MCB) whose IPO was extended
is expected to be the second firm to list on the EGM in December while
Swala Oil and Gas Tanzania is in approval process.
MCB is selling five million shares at Tsh550
($0.34) and its founding members, according to its prospectus have
already subscribed 600,000 shares for Tsh340 million ($211,752), or 12
per cent stake of the total shares on offer, leaving 4.4 million to
investors.
MCB whose banking licence was issued on March 1,
2012 and Maendeleo Bank, whose licence was issued on September 11, 2013,
are startup institutions and do not have any track record of
profitabilit
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