GetBucks shareholders approve ZWL$5 mln capital raising initiative

24 Jun, 2019 - 15:06 0 Views
GetBucks shareholders approve ZWL$5 mln capital raising initiative

eBusiness Weekly

HARARE – Listed –Micro-financier, GetBucks Limited said on Monday its shareholders approved a rights issues to raise ZWL$5 million (about US$794 000) to grow its capital base and fund operations.
At an extraordinary general meeting held last Friday, the Zimbabwe Stock Exchange-listed financial institution had also sought shareholder nod for two more proposals – to place 350 million shares under the control of its directors and establish an employee share option scheme.
While the former was agreed to, the latter was turned down, company secretary Paul Soko, said.
To raise the capital, GetBucks will issue about 69.6 million shares with a nominal value of RTGS$0.0001 each up for subscription at a price of ZWL$0.072 at a ratio of 6.36 new shares for every 100 shares held.
“The bank requires new capital injection in order to continue to grow its loan offerings to productive sectors of the economy namely agriculture and manufacturing,” said GetBucks chairman, Rungamo Mbire, justifying the capital raising initiative.
“This new capital will also allow the bank assets to grow through a mix of funding including debts and deposits.”
The rights offer opens this Wednesday and closes on July 19, 2019.
“GetBucks Zimbabwe will apply the net proceeds of the rights issue to increase its working capital and finance the expansion of operations and underwrite more financial products particularly to the productive sectors,” Mbire said.
GetBucks Limited and Zahra Investment Trust (ZIT) will underwrite the offer.
ZIT is a Zimbabwean trust that owns 51.6 percent shareholding in GetBucks Zimbabwe.
Through the proposed employee share option scheme, GetBucks sought to place about 100 million shares under the initiative.
The scheme was aimed at ensuring “GetBucks Zimbabwe staff identify themselves more closely with the company’s activities and promote its continued growth.”
The proposal, however, failed to get the required majority vote of 50 percent plus one to sail through.
GetBucks Zimbabwe, which is licensed as a deposit taking micro-finance institution, employs 66 people and operates 14 branches across Zimbabwe.
The institution is currently servicing an estimated 15,000 clients. – New Ziana

 

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