YETU Microfinance Bank second primary offer oversubscription is imminent if the micro-lender has a strategic partner, stock brokerage said on Wednesday.<\/p>\n
The broker have it that partner will \u201cpick up a chuck\u201d of share because Yetu has a good supply of stocks on the market at the same IPO price of 550\/-.<\/p>\n
Orbit Securities, Head of Research and Analytics, Imani Muhingo, said for firm go for second IPO with the same trading price implies that the \u201cbook building process was successful and a buyer was set\u201d.<\/p>\n
\u201cFrom the looks I believe they have ready set interested strategic investors who would pick up a chunk of the offer,\u201d Mr Muhingo said.<\/p>\n
The analyst said if the bank has not set up an interested buyer then under subscription is looming since investors could easily access shares at the bourse.<\/p>\n
\u201cI say this because Yetu has a good supply of shares on the market at the same IPO price of 550\/-. \u201cIf there are no ready set strategic investors then I expect a substantial under subscription,\u201d Mr Muhingo said.<\/p>\n
Other broker said the IPO was too small for the market since 2.0bn\/-that put on offer could be bought by a single investor.<\/p>\n
However, Yetu said that they expecting an oversubscription based on its good performance built since listing on the alternative market in some four years ago.<\/p>\n
Yetu Managing Director, Altemius Millinga said the first IPO was not oversubscribed since they were not known.<\/p>\n
\u201cAnd we entered the market with a new name\u2026these limited our subscription level,\u201d Mr Millinga said adding: \u201cBut this time around we are positive that the IPO will be oversubscribed.\u201d<\/p>\n
The bank said they want more individual to own the shares instead of limited number of shareholders. The microfinance bank offloaded 3,636,365 shares to market at a price of 550\/- a stock.<\/p>\n
In 2016, Yetu sold 6,223,380 shares at the price of 500\/-and managed to raise 3.1bn\/-.<\/p>\n
Yetu was the Best Listed Company, Enterprise Growth Market (2017), CITI Micro Entrepreneurship Awards 2017, Best Financial Institution, Best Listed Company in Enterprise Growth Market ( 2018).<\/p>\n","protected":false},"excerpt":{"rendered":"
YETU Microfinance Bank second primary offer oversubscription is imminent if the micro-lender has a strategic partner, stock brokerage said on Wednesday. The broker have it that partner will \u201cpick up a chuck\u201d of share because Yetu has a good supply of stocks on the market at the same IPO price of 550\/-. Orbit Securities, Head […]<\/p>\n","protected":false},"author":84,"featured_media":3981,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[2158,2157],"class_list":["post-3980","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-imani-muhingo","tag-yetu-microfinance-bank"],"yoast_head":"\n