Mwalimu Bank listing now June 22

Mwalimu Commercial Bank (MCB) listing date has been pushed back to two weeks after stakeholders failed to compile all funds on time after initial public offer (IPO).

The listing of first ever, Mwalimu Bank, was planned for Monday this week but the work of collecting IPO subscriptions took long than expected since it also involved wide network of mobile phones.

Dar es Salaam Stock Exchange, Chief Executive Officer, Mr Moremi Marwa, said that collectors wanted time extension as they encountered a challenge of gathering all funds, especially from mobile platform.

“They (MCB) asked for two more weeks to finalise allotment before listing,” Mr Marwa said yesterday. The bourse CEO said the new date is now Monday June 22.

The IPO was the first to use mobile platform thus posed a new challenge of compiling all data ahead of allotment.

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 was taking the entire amount under green shoe option. The sponsoring broker, Core Securities CEO, Mr George Fumbuka, earlier said the green shoe was applied so that all who applied for shares should get their requirement in full. 

“It was a great IPO and we thank the promoters and the issuer for tremendously job,” Mr Fumbuka said.

The bank prior to IPO had 17bn/- and wanted to rise another 8.0bn/- to have a total of 25bn/- as core capital, well above the Bank of Tanzania (BoT) threshold of 15bn/-.

The oversubscription was imminent as Tanzania Teachers Union (TTU) announced that it will spend 11bn/- for buying shares on behalf of its active members at the IPO.

The 100 shares costs 50,000/-. TTU has over 200,000 active members. The MCB shares 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) 4.0 per cent and public 80 per cent.

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

The bank will supply the normal banking products, with 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 from Dar es Salaam, Tanzania

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