THE Tanzania Postal Bank (TBP) is still keen to list on the Dar es Salaam stock Exchange (DSE), perhaps later this year, the firm's chief executive officer, Mr Sabasaba Moshingi, has said.
Mr Moshingi said there were several technical issues currently being worked out before the initial public offer (IPO) is floated.The bank's move to go public aims to make it operate more efficiently and increase profitability level by introducing various vehicles to improve client services.
Mr Moshingi told the 'Daily News' in Dar es Salaam at the weekend that plans to list at the bourse remains intact and hopefully in April or May, this year, the bank would have all clearance under the Company's Act before going public.
TPB, established under Act of Parliament in 1992 as a corporation, needs to change its status and obtain a new licence before going public to raise the required capital to become a fully commercial bank.One of the DSE listing requirement is to generate profit for three consecutive years and to have a sound balance sheet.
"The process towards listing has reached an advanced stage, save for some few underground works and on top of going to parliament to amend the law to allow the bank to go public," he added.Listing at the stock market has multiple benefits to both the bank and the general public in terms of raising low cost capital through sale of shares.
The low cost capital would thus allow the bank to re-invest by expanding and modernizing its services.Mr Moshingi said TPB is one of the banks with the widest network in the country, but inadequate capital has been one of the reasons hindering the expansion and modernization plans.
Recently it was stated that TBP shareholders had plan to increase the bank's capital in the next five years, a move that will give it an extra boost on executing its services, mostly to SMEs.In 2010, the Bank of Tanzania (BoT) raised the minimum capital requirement for commercial banks from 5bn/- to 15bn/-.