Micro-finance institution GetBucks Zimbabwe is set to raise $3,2 million through offering shares to the public on its course to listing on the Zimbabwe Stock Exchange (ZSE) next month.
The listing makes GetBucks the first micro-finance company to join the bourse and comes four years after the company began operations as a credit only micro-finance institution. The company was recently granted a licence to take deposits.
In a pre-listing statement released yesterday, GetBucks said it will offer 93 567 251 ordinary shares in the company at a subscription price of $0,0342 per share.
“On conclusion of the IPO [Initial Public Offering], it is envisaged that the entire issued share capital of GetBucks Zimbabwe of 1 093 567 251 ordinary shares will be listed on the ZSE,” it said.
The offer opened yesterday and will close on January 8. GetBucks Zimbabwe shares will be listed on ZSE on January 15, 2016.
GetBucks Zimbabwe is owned 55% by GetBucks Limited, a company registered in Mauritius and 34,06% is owned by Brainworks Capital Management (Private) Limited, a diversified Zimbabwean registered investment holding and corporate advisory company. Brainworks Zimbabwe is a 100% owned subsidiary of Brainworks Limited, a company registered in Mauritius. The balance (10,96%) is owned by various local pension funds.
The listing on ZSE is meant to unlock shareholder value and access more appropriate risk-adjusted cost of capital (debt and equity) than GetBucks Zimbabwe has been able to obtain as a private company.
The listing is also meant to comply with the shareholding structure as prescribed by the regulatory authority, Reserve Bank of Zimbabwe (RBZ).
As part of the micro-bank licencing conditions, Brainworks Zimbabwe has to reduce its shareholding in GetBucks to a maximum of 25% from 45% to comply with the RBZ rules on shareholding for deposit taking institutions.
GetBucks has a current loan book of over $11 million. It has 13 branches countrywide Servicing approximately 18 240 clients.
