20 January 2013

Tanzania: Bank Raises U.S.$6.55 Million From Rights Issue

Dar es Salaam — DCB Commercial Bank Plc, one of the fastest growing commercial banks here says it has raised Tsh10.5bn ($6.55m) from the sale of rights issue.

The DCB's Board Chairman, Ambassador Paul Rupia told East African Business Week in Dar es Salaam that the bank's rights issue was successful with a percentage rating of 72%.

According to Ambassador Rupia, out of 38,546,791 shares issued in the implementation of capital build up program, a total of 27,607,356 shares have been subscribed for and taken up.

"Out of these shares, the bank has obtained a total of Tsh10.5bn (about$6.55m) compared to the target of Tsh14.6bn (about$9.11m) to be mobilized as share capital under this exercise," Ambassador Rupia said.

He added that with these profound results, the bank was pleased to announce that only 28% of the issued shares under the programme have lapsed.

That is 10,939,434 shares are available for general subscription by interested shareholders in line with the conditions set forth in the Information Memorandum so as to receive the remaining amount of Tsh4.1bn ($2.56m) to reach the above stated target of Tsh14.6bn (about$9.11m).

Accordingly, he said the sale of 10,939,434 lapsed shares will run for only two-weeks effective from 14th January 2013 to 25th January 2013.

Shareholders wishing to buy any number of the lapsed shares will approach the same place where they made their original purchase and pay for the shares.

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

In the meantime, trading of the existing DCB shares at the Dar es Salaam Stock Exchange will continue as usual. However, trading of the rights issue shares will commence from Monday 11th February 2013.

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