16 January 2013

Tanzania: DCB Bank Raises 10bn/ - On Capital Build Up Programme

DCB Commercial Bank has managed to collect over two-thirds of its right issue almost a month before the deadline of the exercise, the bank chairman said in Dar es Salaam.

The bank plans to use the raised amount from the right issue in the expansion project that envisages spreading its business countrywide after graduating from a community to the fully fledged commercial bank last year.

Out of the 38,546,791 shares the bank issued in the execution of its capital build up programme, shareholders have subscribed to and taken up a total of 27,607,356 shares.

The Bank Board Chairman, Amb. Paul Rupia said that the bank has raised 10.5bn/- out of the already sold shares against the target of 14.6bn/- to be mobilized as share capital under the exercise.

"With these profound results, the bank is pleased to announce that the ongoing exercise has succeeded by about 72 per cent," he said.

According to Amb. Rupia, the sale of 10,939,434 lapsed shares will run for two weeks effective from January 24, this year to January 25, this year. The bank is listed at Dar's bourse.

He said shareholders wishing to buy any number of lapsed shares will approach the same place where they made their original purchase and pay for the shares they desire to buy in the same manner.

"At the closure date, a final list of valid applications received will be made and shares allotted on pro-rata basis," he said.

In the meantime, Amb. Rupia said the trading of the existing DCB shares on the Dar es Salam Stock Exchange (DSE) will continue as usual but trading of the Rights Issue shares will commence from February 11, this year.

At the closure of the market yesterday, the bank share traded at 620/-, a price held firm since the beginning of the year.

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