Maendeleo bank for listing next month

Maendeleo Bank is scheduled for listing on the Dar es Salaam Stock Exchange’s Enterprise Growth Market (EGM) next month, becoming the first product of the bourse’s alternative market.

The bank is off-loading eight million shares through the initial public offer (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 mid next 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 oversubscription, allocation will be on pro-rata basis.

According to a statement by Tanzania Securities, the regulator, the Capital Market and Securities Authority (CMSA) has approved the prospectus for the IPO, with the listing scheduled for October 21, 2013. 

Maendeleo Bank is a public limited liability company incorporated in 2011 as a regional bank with head offices at Luther House 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.
Source: Daily News, reported by Abduel Elinaza from Dar es Salaam, Tanzania
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