AfricaPress-Tanzania: MKombo ZI Commercial Bank (MKCB) has extended its share sales to shareholders for 30 days to the end of next month.
The bank, owned by Roman Catholic Church, said the extension was deemed necessary, because the amount intended to be raised was not realised.
Mkombozi Chairperson Prof Marcellina Chijoriga said she was confident that they will raise the intended amount in the next one month through existing shareholders.
“It’s time to buy not for self–organizing… [Since] the end year obligations has passed,” said Prof Chijoriga. The share sales are exclusive for the existing shareholders and sold at a discount rate of 25 per cent at 750/-.
Though, the bank share was sold at 780/- yesterday at the Dar es Salaam Stock Exchange (DSE) that was merely 3.8 per cent less in comparison to 750/-.
The chairperson said they expect an oversubscription after the extension though she didn’t said the level of success.
The lender, listed on DSE alternative market, wants to raise 15.4bn/- under the right issue campaign. Mkombozi was listed on DSE six years ago.
Prof Chijoriga said bank has put on offer 20,615,272 new shares to existence shareholders under “renounceable rights”, meaning the lender has issued a new round of stock, which would dilute the shareholders’ equity in the company.
The right issue offers one extra share to every existing share meaning a ratio of one to one.
The purpose of selling shares is to increase the lender capital and facilitate investment in the expansion of banking services through the opening of mini windows, agencies, digitalization investment in Information and Communications Technology (ICT) infrastructure.
The bank wants to expand business and reach more people, especially in rural areas.
“In order to reach our customers wherever they are we have a strategy to open four mini windows and to get many agencies within this year 2021. This will reduce the cost of human resources and buildings,” said Prof Chijoriga adding digitalization was a priority for “us and we aim to increase accessibility and reachability of our bank”.
Currently the bank, which Catholic Church as the majority shareholders, boosts of a market capitalization of 16.08bn/- with shares hardly traded on the exchange.
Mkombozi bank intends to have digital internet which will serve more people especially in rural areas for a short time in the country.
The bank aims to be a financial institution that will provide quality financial services to all sectors and the economy in a sustainable and responsible manner in society to meet the expectations of their customers. MCKB operates in eight regions with 11 branches.
The branches four are in Dar es Salaam and one each in Kilimanjaro, Morogoro, Iringa, Njombe, Mwanza, Kagera and Dodoma regions.
