Wednesday, 24 June 2015

Dr Mengi urges SMEs to list on Dar bourse

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INNOCENT-THE BLOGGER-BOY

IPP Executive Chairman Dr Reginald Mengi holds a copy of a Yetu Microfinance plc prospectus when launching sales of the institution�s shares in Dar es Salaam yesterday.
 Listing on the Dar es Salaam Stock Exchange (DSE) is an opportunity for small and medium sized enterprises to grow their capital base, Tanzania Private Sector Foundation (TPSF) Chairman Dr Reginald Mengi has reminded the business community.
 
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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