BANK M Tanzania has started procedures to issue an Initial Public Offer (IPO) at the Dar es Salaam Stock Exchange (DSE) in a bid to raise additional capital of 50bn/-.
The bank’s Chief Executive Officer Designate Ms Jacquiline Woiso said in Dar es Salaam on Tuesday while announcing the bank’s financial results for the first quarter 2016 engagement with the regulators, the Capital Markets and Security Authority (CMSA) and Bank of Tanzania (BoT) have started.
“The capital plans are scheduled for the second and third quarter this year and subject for approval by the regulatory authorities,” she said. She said the issuance of an IPO as well as the private placement are in line with the bank’s plan to increase its core capital to about 50bn/-.
Bank M is expected to be the eighth bank to go public after the CRDB, National Microfinance Bank (NMB), DCB Commercial Bank listed at the main market segment while Mkombozi Bank, Mwalimu Bank, Maendeleo Bank and Yetu Microfinance Bank fall under the Enterprise Growth Market (EGM).
Ms Woiso said in terms of product development, the bank is in the process of rolling out two products in the market, that is ‘Money Moja kwa Moja’ that will enable the bank’s clients to upload their outward clearing cheques from the convenience of their offices rather than operating through traditional ways.
The other product in the pipeline is cash management which will assist the bank’s clients in faster realisation of their accounts receivables, processing of payments and overall liquidity management through a centralised portal.
In the first quarter, Bank M Tanzania registered superb 2016 first quarter performance after posting pre-tax profit of 7.4bn/- compared to 6.13bn/- for the same period last year.
