Yetu to raise Sh2 billion in fresh offer

Dar es Salaam. Yetu Microfinance Bank Plc is in September this year set to issue another Initial Public Offering (IPO) to raise Sh2 billion in its market capitalisation at the Dar es Salaam Stock Exchange (DSE).

According to DSE market report of Friday, the company’s total market capitalisation stood at Sh6.66 billion.

In tandem with the proposed initiative, the company has requested the Capital Markets and Securities Authority (CMSA) to change its 2015 IPO that requires a buyer to buy at least 200 shares worth Sh100, 000 to at least 910 shares worth Sh500, 500.

“After the approval by the CMSA, we will start selling the shares at DSE,” said Altemius Millinga, the Bank’s managing director, during the 4th annual shareholders general meeting held in the city yesterday.

According to him, the bank has a total of 12, 500 shareholders, noting that the number is projected to increase as the management contemplates an expansion plan.

The bank’s dividend payout for 2017 was Sh775.2 million, of which Sh297.1 million had been paid to 1070 shareholders by August 16 this year.

The dividend payment was Sh508.8 million the previous year.

The growth in dividend payout was contributed to by introduction of various digital platforms such as YetuMobile App and biometric teller system that has helped both educated and uneducated customers, particularly those living in rural areas to access the bank’s financial services, according to Mr Millinga.

Speaking to The Citizen at the meeting, Ramadhan Kitenge who holds 400 shares of the bank, said he received Sh25, 600 dividend from the bank in 2016 and Sh15, 000 this year.

“However, the selling of bank’s shares at the DSE is not pleasing,” said Mr Kitenge, alluding to the general derth at the DSE.

Meanwhile, Mr Millinga further said the majority of the shareholders lack knowledge on shareholding and called for more public awareness on stock trading.