Yetu Microfinance to list on Dar Stock Exchange
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: In2EastAfrica