The share price of Mkombozi Commercial Bank (MCB), which opened the initial public offering (IPO) for three weeks in November 2014, recorded a 50% increase during the first day of trading yesterday on the Dar es Salaam Stock Exchange (DSE) secondary market.
Initial shares of the bank were sold for TZS 1,000 but surged to TZS 1,500 just after listing in spite of an under-subscription of 25% during the IPO period.
“Despite the fact that our IPO was subscribed by 75%, we believe that the bank’s shares will do better in the market,” said MCB board chairman Masha Mshomba who spoke at the end of the IPO period and went on to successfully predict that the share would appreciate soon after listing.
In an interview with TanzaniaInvest in July 2013, MCB Managing Director Edwina Agnellus Lupembe explained the bank’s commitment to customer service, growth and continued development.
“Mkombozi Commercial Bank is a bank with one of the fastest growing client base in the country,” she said, “Across our business, our goal is to assist clients succeed, contribute to orderly and well functioning markets and support global economic growth.”
Following the three-week IPO, the bank listed on the newly Enterprise Growth Market (EGM) Segment of the Dar es Salaam Stock Exchange (DSE), which is an alternative listing window for small and medium-sized companies.
The MCB is the third firm to join the EGM behind the Maendeleo Bank and Swala Oil and Gas, which listed in November 2013 and August 2014 respectively.