YETU Microfinance is today launching an
Initial Public Offer (IPO) to raise 12.5bn/- as seed capital through
sale of shares, thus making it set to become the first microfinance
institution to list on the Dar es Salaam Stock Exchange (DSE).
Yetu Microfiance Managing Director, Mr
Altemius Milinga, said in Dar es Salaam that over 70 per cent of its
customers are women and youth, in the quest to support the government’s
effort to create jobs through self-employment.
“YETU Microfinance is eyeing to become a
market leader in microfinance, branchless banking and mobile banking in
offering simple, innovative and value added products and services to
the micro and Small enterprises and the general public,” he said.
“With the IPO launch, the stock market
investors and the public in general will certainly be interested to know
whether the bank is going to be a good investment bet or not,” he said,
adding that YETU Microfinance has a good profit track records.
For example, in 2012, it made profit of
500m/-, 1bn/- in 2013 and 700m/- last year. He said it slightly slowed
down due to the expansion plans as preparations to be Microfinance Bank
soon after listing at the equity market.
He said the institution started as Youth
Self Employment Foundation (YOSEFO) in 1997 with an initial capital of
30m/- which grew to 3.5bn/- at present.
The shares offered for sale are 25,193,
213 that will be sold at the price of 500/-. And the shares expected
after the IPO will be 36,972,249. The offer will be closed on 30th July
before going for listing on the 17th of August 2015. The minimum shares
that an individual will be allowed to purchase are 200,000 worth
100,000/-.
The lead bank will be CRDB and all its
branches for which YETU Microfinance shares will be available for sale.
Other outlets for which shares will be sold include all the YETU
Microfinance branches, Azania Bank, Postal Bank, Mkombozi Commercial
Bank, the Tanzania Women Bank and all Community Banks across the
country.
He said according to the BoT
regulations, for the Microfinance Bank to operate it is required to have
a capital of 5bn/-. The remaining amount from the sale of shares will
be spent on expansion plan in a bid to serve majority of the financially
underserved Tanzanians.
It is currently offering financial
services in several branches including Mzizima and Mbagala in Dar es
Salaam, Ifakara and Mgeta in Morogoro, Zanzibar and Kilwa.
Source: Daily News, reported from Dar es Salaam, Tanzania
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