Maendeleo Bank share price up 20% at listing

Investors who bought shares of Maendeleo Bank during its initial public offering (IPO) that ended last month have a chance to earn a 20 per cent return to their investment.

That is the case because the share price improved by Sh100 during listing at the Dar es Salaam Stock Exchange (DSE) yesterday

Maendeleo 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 Enterprise Growth Market (EGM), according to data obtained during the listing yesterday.

The market data showed that during official launch of the EGM segment, an SME window where Maendeleo Bank became the first product to list, there was bid for 900 shares at Sh600 each compared with Sh500 sold during IPO.

The church bank managing director, Mr Ibrahim Mwangalaba, said all 9.2 million shares were subscribed, meaning that the bank raised Sh4.6 billion for its capital expansion.

“It’s a good beginning showing that the shares are in demand. It’s a sign of good future,” commented Moremi Marwa, DSE chief executive officer.

Mwanza Community Bank is expected to be the second firm to list through EGM in December while Swala Oil and Gas Tanzania is in the approval process.

Source: The Citizen, reported by Alawi Masare from Dar es Salaam, Tanzania

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