The initial public offering (IPO) of the Dar es Salaam Community Bank (DCB) has been oversubscribed by more than 350 per cent.

However, it is unlikely that shareholders who bought shares during the IPO will be refunded.

DCB board chairman Paul Rupia said Sh5.2 billion was recorded from the offer to the public between early last month and last week.

DCB wanted to raise Sh1.5 billion to implement its five-year strategic plan (2007-2011).

The plan involves extending the bank's branches to 10 from four.

"We have applied to the capital markets regulatory body and the Bank of Tanzania to enable us to use the whole fund raised," Mr Rupia told reporters in Dar es Salaam.

"This achievement indicates that Dar es Salaam residents are confident with their bank," he said.

The number of shareholders of the bank, which was established eight years ago, has increased to 8,066 after the IPO was concluded from 2,662 before.

DCB started operating in 2002 with an initial capital of Sh1.1 billion raised from three Dar es Salaam municipalities and the city council.

DCB floated its first IPO in 2002 and raised Sh672 million from the municipalities and the public.

Later, the bank underwent the rights issue to raise funds from its shareholders and Sh1.4 billion was raised.

The bank's managing director, Mr Edmund Mkwawa, noted that the great achievement from the IPO would enable the bank to implement the plan accordingly.