Tanzania: Yetu Microfinance to List On Dar Stock Exchange
Yetu Microfinance launched an Initial Public Offer (IPO) last week.This IPO should allow the company to raise Tzs 12.5 billion of capital (around 4.8 million euros) and to become in the process the first microfinance institution listed on the Dar es Salaam Stock Exchange.
The company is offering more than 25 million shares worth Tzs 500. The offer ends on 30th of July and listing should begin on 17th August.
Yetu Microfinance counts six branches: Mzizima and Mbagala (Dares Salaam), Ifakara and Mngeta (Morogoro region), Zanzibar and Kilwa, supported by 218 financial services centers located in communities and villages. Its mission is to lend to unbanked and under banked Tanzanians. The company also plans to offer saving products and a mobile banking system (a banking licence application has been submitted to the Bank of Tanzania).
Thanks to this capital expansion, the company’s capital will be well over the 5 billion necessary to operate as a bank. The remaining of the capital will finance the expansion plan.
Yetu Microfinance started as Youth Self Employment Foundation (YOSEFO) in 1997 with an initial capital of 30 million. Today, it is a 3.5 billion capital company which counts 28,000 clients.