Mwalimu Bank listing on Dar bourse on course

Compilation of banking information of investors in the Mwalimu Commercial Bank (MCB) is expected to be completed this week ahead of the official listing of the bank on the Dar es Salaam Stock Exchange (DSE).

The bank, according to its prospectus, was to enter the stock market on June 8, 2015 but the listing has so far been postponed for at least two times due to what has been described as changing listing requirements by DSE.

The listing sponsoring broker, Mr George Fumbuka, told the Daily News in Dar es Salaam that compiling the banking information of over 230,000 prospective investors who bought MCB shares has been difficult, delaying the listing as a result.

“The listing has been delayed due to a record high number of share buyers...the 235,000 people who bought shares in MCB is ten times bigger than all past IPOs (Initial Public Offers) put together,” Mr Fumbuka said, adding that the new listing regulations demand that the information of all bank accounts or simu-banking accounts of investors be obtained.

“We are right now communicating with about 5,000 investors whose applications do not have this information or founder teachers who paid prior to the IPO,” he said, noting that the exercise is set for completion this week.

DSE Chief Executive Officer Moremi Marwa was recently quoted as saying that MCB had asked for more time to finalise the allotment before listing.

MCB’s IPO, which was oversubscribed by 24 per cent to receive 31bn/- against the envisaged 25bn/-, is the first to use mobile platform, posing new challenges of compiling all data ahead of allotment.

Tanzania Teacher’s Union (TTU), a Trade Union established under the Employment and Labour Relations Act 2004, has sponsored and promoted the bank.

With over 200,000 members across the country, TTU is expected to own 16 per cent of the bank’s issued and fully paid up capital while its economic wing, the Teacher’s Development Company Limited (TDCL) will take four percent, with the remaining 80 per cent floated for the general public.

MCB PLC will be established as a commercial bank, supervised and regulated by the Bank of Tanzania under its prudential regulatory regime.

It will supply the normal banking products, with provision that it will spread its footprints as quickly as possible to reach TTU members.

Given the current financial market in the country, in which some institutions offer costly products, teachers are aspiring to establish a financial institution that enables them to access affordable bank products or service.

Analysts foresee establishment of the bank as a good move towards enabling teachers to overcome economic hardships, improve standard of living and contribute to national development.
Source: Daily News, reported by Masato Masato, from Dar es salaam, Tanzania
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