 |
|
Tanzania's National Microfinance Bank - IPO: |
 |
According to NMB's prospectus, 105 million shares will be sold at 600 shillings apiece and will start trading on the Dar es Salaam Stock Exchange (DSE) on Oct. 31.
A five-percent tranche of the shares will be set aside for bank employees, the prospectus said.
Institutional investors and companies may buy only 20 percent of the remaining shares, with the rest reserved for individuals, who cannot buy on behalf of institutions.
Investors can buy a minimum of 100 shares and increase bids in multiples of the same amount. Shares will be on sale until Sept. 8 and the allotment will be announced on Oct. 8.
In 2005 the government sold 49 percent of NMB to a consortium led by Dutch Rabobank [RABN.UL]. The state owns the rest.
Rabobank owns 34.9 percent while Exim Bank Tanzania Ltd, the Tanzania Chamber of Commerce Industry and Agriculture and National Investment Co Ltd NICOL.TZ own 14.1 percent.
The government will have 30 percent of the bank after the sale, which is only open to Tanzanian individuals and companies.
With more than a million customers, NMB has 120 branches covering more than 80 percent of Tanzania and plans to double the number of automated teller machines on its network by the end of the year from a current 100, the prospectus said.
The bank's assets stood at 1.21 trillion shillings as of June 30. The bank said among challenges it faces are poor physical infrastructure and the risk of holding a bulk of its deposits in the form of government securities.
The DSE has attracted 11 companies to list on its bourse since its creation in 1998, with three cross listed from Kenya.
In 2006, the government offered a three-year tax cut to 25 percent from 30 percent for companies offering at least 35 percent of their shares to the public.
Source: Reuters
____________________________________________________________
Previous Featured Projects:
- Alliances Development Immobilier - IPO
- Celtel Zambia IPO
- Safaricom IPO – Africa’s landmark listing
- The True State of Real Estate in Kenya
- Cultivating a Saving Culture across Africa
- Venture Capital for Africa
- The Access Kenya IPO
- KCB Share Split
- Eveready East Africa IPO
- Kenya Re IPO
- Stanbic UG - IPO
- The Art of Social business
- Ubuntu Micro-Finance Project
- The concept of 'UBUNTU'
- Investment Group to steer Sudanese Bank's IPO
- Africa's Equity Markets – the final frontier