Mwalimu Bank listing extended to next month

Mwalimu Commercial Bank (MCB) listing date has been pushed back once again to the first half of next month after the allotment workload proved to be a huge-task than anticipated.

The listing of first ever Mwalimu Bank was planned on Monday, June 8, before being pushed to this morning, but the work of collecting IPO subscriptions took long than expected since it also involved wide network of mobile phones.

Dar es Salaam Chief Executive Officer Mr Moremi Marwa said that normally allotment involving working out about 10,000 subscription but MCB primary offer increase the number 20 times more.

“The workload proved to be big than anticipated, thus cancelling the Monday 22 (today) listing date as planned,” Mr Marwa told the ‘Daily News’ over the weekend in Bagamoyo.

The IPO was the first to use mobile platform thus poising a new challenge of compiling all data ahead of allotment after registering 200,000 subscriptions.

The listing at the bourse takes place after the allocation. The MCB primary offer was oversubscribed by 24 per cent to receive 31bn/- instead of planned 25bn/-.

However, the bank takes the entire amount under a green shoe option. The oversubscription was imminent as Tanzania Teachers Union (TTU) announced that it will spend 11bn/- for buying its active members shares at IPO. The 100 shares costs 50,000/-.

TTU has over 200,000 active members. The bank, prior to IPO, has at hand 17bn/- and wants to raise another 8.0bn/- to have a total of 25bn/- as starting capital.

Bank of Tanzania (BoT) capital threshold is 15bn/-. The MCB share are allowed to be sold in other East African countries freely as long as this is permitted by regulatory authorities in those sister countries—Kenya, Uganda, Rwanda and Burundi.

The bank structure after the IPO will be TTU 16 per cent, Teachers’ Development Company Limited (TDCL) 4.0per cent and public 80 per cent.

MCB will establish a commercial bank, late this year, which will be supervised and regulated by the Bank of Tanzania under its prudential regulatory regime.

The bank will supply the normal banking products, with a provision that it will spread its footprints as quickly as possible to reach TTU members; other teachers and workers; and the public in general.
Source: Daily News reported by Abduel Elinaza, from Dar es Salaam, Tanzania
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