The Arch Financial and Investment Advisory Managing Director, Iyen Jairus Nsemwa, said the extension was granted due to the fact that the IPO kick-off was delayed by almost two weeks.
"Technically the delay was beyond our control," Mr Nsemwa told 'Daily News' on Wednesday, "and we need at least a month to properly sell the bank-thus we have applied for extension."
The MD said the Capital Market and Securities Authority has resolved to grant the extension following the delaying of the primary offer kick off. Arch Financial is a leading advisor of Mwanza Bank.
The IPO was scheduled to end today but it has been extended to November 30th to give room for investors to make proper decisions before buying the bank's shares.
"Normally IPOs are run for one or two months, therefore two week was too short a period to do justice to the investors," Mr Nsemwa said.
The extension also envisage to suit well the community bank as it will give rooms for institution investors-the municipal-sufficient time to make decision to invest.
"Most of municipal councils in the Lake Zone have shown interest on buying shares but could not do so without the consent of their respective councils," the Arch Financial, Director of Corporate and Project Financing, Mr Richard Manamba said.
The councillors meetings are scheduled to convene between now and the end of November.
Mr Manamba said even before the IPO period extension the investors receive the Mwanza Community Bank positively reflecting the achievement of DCB Commercial Bank, which started as a community.
"They understand that it's a long term investment, and dividends will be issued later. The only major concern was safety of their investment," Mr Manamba said.
The bank is closely monitored by CMSA, the Bank of Tanzania (BoT), and Nominated Advisor.
The bank is a brain child of Victoria SACCOs, which last year offered a 100 per cent dividend to it's about 3,000 shareholders. The SACCOs wanted to convert to bank and retains its name but decided to use other name in a different project.
According to Tanzania Securities, stock brokerage firm, the bank anticipated to list December 13, where a share goes for 550/- per share at a lot of 100 shares
The bank offered 5 million shares worth about 2.75bn/-, which is 88 per cent of the total shares on IPO, of which 600,000 have been retained by founder members.
The Mwanza Regional Commissioner, Eng Evarist Ndikilo said the share issuances would facilitate to collect 2bn/- required capital by BoT to establish a community bank.
Source: Daily News, reported by Abduel Elinaza, from Dar es Salaam, Tanzania
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