Dar es Salaam. A share of Mwalimu Commercial Bank Public Listed Company (Plc) appreciated by up to 40 per cent during the first day of trading at the Dar es Salaam Stock Exchange (DSE) in what analysts believe signifies that investors has high hopes over the new bank’s operations.
A share for the bank which is supported by Tanzania Teachers Union, traded for Sh500 during the Initial Public Offer (IPO) but it gained to the highest price of Sh700 before closing at Sh665 during its first day of trading on Friday.
The bank listed on the Enterprise Growth Market (EGM) segment of the DSE, realised a turnover of Sh2.513 million from 12 deals on Friday.
“Though I was not aware of the listing, such a performance may be a clear indication that investors have high regard for the bank—largely due to its good capital base and the network of clients who are teachers,” the Zan Securities Limited chief executive officer, Mr Raphael Masumbuko told The Citizen.
The bank that is slated to kick off offering its services in May, 2016 with one branch at Samora Avenue and later at Mlimani City, has a capital base of Sh31 billion, according to the bank’s Chief Executive Officer, Mr Ronald Manongi
The listing followed a successful Initial Public Offer (IPO) which was oversubscribed by 24 per cent.
According to the DSE chief executive officer, Mr Moremi Marwa, the coming of the new company which became the fourth company to be listed on the DSE’s Enterprise Growth Market segment mounted the bourse’ total market capitalisation by Sh30.91 billion.