MAENDELEO BANK TO MIGRATE TO DAR ES SALAAM STOCK EXCHANGE MAIN MARKET

The Minister for Finance and Planning, Dr. Philip Mpango (second left) cuts a ribbon to inaugurate the secondary offering of 10.5bn/- of the Maendeleo Bank Plc in Dar es Salaam yesterday. With him is Archbishop of the Eastern and Coastal Diocese for the Evangelical Lutheran Church of Tanzania, Bishop Dr. Alex Malasusa (first left), the Chairperson of the Board of Directors of the bank, Mr. Amulike Ngeliama (right) and Managing Director, Mr. Ibrahim Mwangalaba.

Maendeleo Bank is set to become the first firm to graduate from Dar es Salaam Stock Exchange (DSE)’s lower market to the main investment market (MIM) in December after meeting the qualifying requirements.

Maendeleo Bank, the first to list on DSE’s alternative market 2013, has applied to list its new 17.6 million shares to MIM. Migration to the DSE’s main market will come after completing its secondary offering expected to raise 10.5bn/- in 45 days.

DSE’s Manager—Finance and Research Mr Ibrahim Mshindo said the bank met all set stipulated to graduate to the main investment market (MIM).

“Maendeleo (bank) has demonstrated a clean profitability record in the last three years, which is the main condition to migrate,” Mr Mshindo told the `Daly News’ at the sideline of official launching of the secondary offering of the bank which has 50 per cent green shoe option.

The secondary offering started on Monday but was officially launched yesterday by Minister of Finance and Planning Dr Philip Mpango. Mr Mshindo said the bank actually applied to list its new share at MIM in December 5 and automatically become a fourteenth member.

DSE’s alternative platform—Enterprise Growth Market (EGM) current has six members namely Maendeleo Bank, Mkombozi Bank, Mufundi Community Bank, Swala Energy, Yetu Microfinance Bank and Mwalimu Bank.

Maendeleo’s Managing Director Ibrahim Mwangalaba said they were optimistic that the secondary offering would be fully subscribed due to their past experience. “We have an indirect underwriter because if the IPO was oversubscribed [by 40 per cent] in Dar es Salaam alone, we cannot fail to raise 10bn/- country wide,” Mr Mwangalaba said.

The secondary offering will run for 45 days up to November 3rd.

Daily News