MUCOBA Bank Plc IPO was launched this week. CORE Securities, named East Africa Best Advisory Brokerage by Capital Finance International, provides a summary extract from MUCOBA Bank PLC Prospectus. The IPO will close on 20th October 2015.
MUCOBA bank PLC was established in 1998 and is the first community bank in Tanzania. MUCOBA bank PLC is licensed by the Bank of Tanzania as per the banking and financial institutions Act of 2006 and regulated by it under the Bank of Tanzania Act 2006.
The bank is licensed to provide all normal commercial banking services but its main focus is on organized grassroots economic groups that have been largely under-banked ; principally, this includes individuals running Small and Medium Enterprises (SMEs) in Mafinga and neighboring districts of Iringa region as well as other regions in Tanzania.
The bank as part of its ongoing capital restructuring program has issued an IPO (Initial Public Offering) to sell 20,000,000 ordinary shares representing 54.7% of the issued and fully paid ordinary share capital of the company after the offer.
The IPO price per share is TZS 250. The minimum subscription is 100 shares and in multiples of 10 shares thereafter .
The sale of shares is intended to:
Enlarge the capital base of MUCOBA Bank PLC Limited
Enhance investors and general public awareness of the bank
Broaden direct share ownership among Tanzanians
Enable the acquisition of technology and facilities for the smooth operation of the bank
To open other branches in the region
MUCOBA Bank Plc Dividend Policy:
Subject to the provisions of the companies Act and the Banking Act, the company in General Meeting may from time to time declare dividends subject to 40% of available profits or such higher amount as the directors shall recommend.
The valuations gave a fair value of TZS 280 per each new share which was rounded down by the directors to TZS 250. The IPO will close on 20th October. Shares can be bought with a minimum subscription of 100 shares and thereafter in multiples of 10. Thus, the minimum required investment is TZS 25,000.
The offer closes on 20th October 2015.
To receive MUCOBA Bank Plc prospectus and buy shares contact CORE Securities:
George Fumbuka +255 754 303 759 –Email: email@example.com
Jeremiah Mchechu +255 764 933 134 –Email: firstname.lastname@example.org
Mary Kessy +255 754 890 629 –Email: email@example.com
Jonathan Swalala +255 754 421 136 –Email: firstname.lastname@example.org