MKOMBOZI COMMERCIAL BANK IPO - CLOSING DATE SATURDAY, 29 NOVEMBER 2014

COMPANY & BUSINESSES

Sector                                                                                    Banking
Proposed Exchange                                                               Enterprise Growth Market - DSE
Shares Expected after the IPO                                                21,838,452
Shares Offered for sale                                                           5,000,000
IPO Price per share                                                                1,000
Offer Opens                                                                            Monday, November 03, 2014
Offer Closes                                                                           Saturday, November 29, 2014
Date to be listed at DSE                                                          Monday, December 22, 2014
  
Mkombozi Commercial Bank Plc. (MKCB) is a limited company incorporated under the Companies Act R.E 2002, with Certificate of Incorporation dated 6th  March 2007. The bank was granted a banking license by the Bank of Tanzania as a fully-fledged commercial bank on 18th July 2009 and started banking business on 28th August 2009. Although MKCB is licensed to provide all commercial banking services, its target markets are small and medium sized entrepreneurs; companies; SACCOS; social enterprises such as schools and universities and corporations. MKCB serves the needs of growing companies, middle-market and large corporations, institutional investors, financial institutions and government entities
 
The company provides investment opportunities to investors to gain an exposure to the highly prospective and competitive banking sector in Tanzania. The marketing strategies of the company will increase market coverage in the country as to date it has four branches which are Kariakoo, Msimbazi, Mwanza and St Joseph. There are other new branches which are in the pipeline.
 
The bank is focusing on its vision and mission, especially following these new developments and challenging environment. Accordingly, Mkombozi Bank is prioritizing its efforts in a number of areas to expand the bank’s revenue base and increase its assets and market outreach. These areas include the establishment of agency banking; intensification of micro lending activities; intensification of corporate lending activities; continuation of advancing salary loans; increase in the mobilization of deposits; establishment of two new branches; and increase of total assets.

 
FINANCIALS
In the fiscal  year 2013, the company’s net income was TZS 119 million which was higher than the previous year, 2012.

TZS  "000"                                         2011             2012               2013  2014 E Interest Income                            2,988,097      4,555,302        7,539,066 12,198,260 (3,426,020) 1,743,396 25,646,465 46,812,415 88,748,734 113,085,030 22,104,011 79.831 Interest Expenses                          (989,801)    (1,624,073)      (2,367,444) Net Income /(Loss) for the           37,406     (716,709)          119,019 year Loans and Advances to Banks       10,915,575      9,677,927      16,691,028 Loans and Advances to                11,555,634     16,694,000      28,889,679 Customers Deposits                                     21,923,374     28,300,036      49,780,083 Total Assets                             33,644,726  40,155,521    64,023,179 Total Equity                               9,261,837     9,396,959    11,505,718 Earnings Per Share - TZS                     0.010          (0.065)              0.003