adminFradreck Gorwe Business Reporter
Zimbabwe Stock Exchange (ZSE) listed microfinance institution Getbucks is looking to raise RTGS$5 million through a rights issue.
The group is looking to re-capitalise on the back of growing loan demand after the company transformed from a pure micro-lender into a full-fledged microfinance bank.
In terms of the capital raised GetBucks said it will issue 69,6 million shares with a nominal value of RTGS$0,0001 each up for subscription at a price of RTGS$0,072 at a ratio of 6,36 new shares for every 100 shares held.
“Demand for loans has grown consistently since 2016 as the bank diversified its offering to include micro-mortgages and SME loans. The bank requires the new capital injection to in order to continue to grow its loan offerings to productive sectors of the economy namely agriculture and manufacturing. This new capital will also allow the bank to grow assets through a mix of funding including debt and deposits,” said GetBucks in an abridged circular to shareholders.
“The shareholders of GetBucks Microfinance Bank Limited will convene and hold the EGM on June 21, 2019, where they will consider and authorise the Board of Directors to raise capital in the sum of RTGS$ 5 007 681 by way of a Renounceable Rights Issue to the Registered shareholders on the Record Date, subject to the company obtaining all requisite regulatory approvals.”
GetBucks Limited’s Zahra Investment Trust will underwrite the offer.
The proposal will require shareholder approval at an extraordinary general meeting (EGM) set for June 21, 2019.
A majority vote of 50 percent plus one is required at the EGM for the capital mobilising transaction to sail through.
In respect to the Employee Share Option Scheme, GetBucks said it was seeking to place about 100 million shares under the initiative, which is meant “to give employees an incentive to stay with the company, create shareholder value and to strengthen the alignment of employee interests to those of shareholders.”
Online Reporter