Speaking at an Initial Public Offer (IPO) for YETU Microfinance Plc
yesterday in Dar es Salaam, Dr Mengi described the IPO as a ‘big
milestone for the microfinance firm to retransform into a larger
entity.’
He attributed the move by YETU Microfinance Plc to good leadership and leaders who think outside the box.
Dr Mengi said it was encouraging to note that a firm which started
with only a million shilling capital had managed to increase its capital
to over billion shillings.
“We all can...this symbolises an end to the claim that we cannot,”
he said encouraging the public to believe and work towards achieving
their belief.
With determination, Dr Mengi said, “we can, we must and we will—make it.”
The business tycoon went on to remind fellow countrymen that he
also came from a poor background but by putting God into his business
and working hard he had become successful.
Dr Mengi also announced his own purchase of 40,000 placement shares
and promised a token of additional shares worth 5m/- to any individual
who will outpace others in acquisition of shares in the company by July
30.
YETU Microfinance Plc that specializes in provision of credit plans
to raise 12bn/- (about US$5.3million) in net proceeds by listing 25
million placement shares of 500/- each in the DSE.
The firm plans to use the increased capital to expand its property
portfolio and develop technological capabilities, among other things.
Yetu Microfinance Plc is the brainchild of the then Youth and Self
employment Foundation (YOSEFO) having transformed under a conceptual
subscription of 11.779 million shares worth 2.944bn/-.
Altermius Millinga, the managing director said the firm had
acquired all microfinance business that was under YOSEFO. He said the
public listing is in line with the firm’s mission to acquire a business
licence as a retail bank.
“There are now 32,000 clients and the firm has serviced more than 100,000 customers to date,” he said.
He explained that the IPO represents 68.1 per cent of the final
issued share capital and that over 2 million placement shares had been
reserved for existing members of YOSEFO.
DSE Finance and Research Manager Mshindo Ibrahim said the decision
by YETU to list at the stock market signifies local companies in the
private sector are growing and redefining themselves.
He said for eighteen months since the adaptation of the enterprise
growth market at the DSE only four companies had registered and Yetu has
now become the fifth company to do so.
He called for increased awareness of the values of listing in the
DSE citing that so far, only 15 domestic companies have been listed.
“We’re engaging with the government and other players to increase
awareness,” he said citing that YETU’s decision to list at the DSE will
improve access to financial institutions especially in rural communities
where latest reports say only 40 per cent have access to the
institution.
SOURCE:
THE GUARDIAN
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