GetBucks to list next year

HARARE - Microfinance institution GetBucks Zimbabwe (GetBucks) will next year launch an Initial Public Offering (IPO) on the Zimbabwe Stock Exchange to raise $3,2 million, the group has said.

GetBucks company secretary Paul Soko yesterday said the shares to be subscribed in the IPO were 93 567 251 ordinary shares at a subscription price of 0,0342 per share.

“On conclusion of the IPO, it is envisaged that the entire issued share capital of GetBucks Zimbabwe of 1 093 567 251 ordinary shares will be listed on the ZSE,” said the microfinance lender’s abridged pre-listing statement released yesterday,.

According to Soko, the rationale of the listing is to attract focused and permanent capital through the IPO and access, more appropriate risk-adjusted cost of capital.

“The IPO also seeks to comply with the shareholding structure as prescribed by the regulatory authority, the Reserve Bank of Zimbabwe (RBZ).

“As part of micro bank licensing conditions, Brainworks Zimbabwe will need to reduce its shareholding to a maximum of 25 percent from 45 percent to comply with RBZ rules on shareholding for deposit-taking institutions,” the company secretary said.

Presently, the specialist lender is 55 percent owned by GetBucks Limited, a company registered in Mauritius and 34,06 percent owned by Brainworks Capital Management (Private) Limited, also registered in Mauritius.

The balance is owned by various local pension funds, with the total costs associated with the listing approximately $300 000.

Post the IPO, GetBucks will have a direct interest of 50,29 percent in GetBucks Zimbabwe, with the authorised share capital of Get Bucks Zimbabwe consisting of 20 billion authorised shares of $0,000001 nominal value each. The transaction is being underwritten by DBF Capital Partners Limited, with no sub-underwriters to the underwriting agreement.

“In the event of an over-subscription, the shares will be allotted on a pro rate basis,” said Soko.

After being issued with a licence to operate as a deposit-taking microfinance institution by the central bank on July 16 this year, GetBucks is currently putting in place infrastructural and operational requirements before commencing operations as a deposit-taking institution.

At the end of June 30, 2015, GetBucks had assets estimated at $14 million with its liabilities at about $8 million.

Since inception in 2011, equity advisory firm Brainworks has developed a balance sheet of approximately $150 million through various investments which include Dawn Property Consultants, Dawn Properties, African Sun, GetSure, FMO Trucks and GetBucks. Of this amount, about $100 million is shareholder funds.

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