CRDB Bank’s shareholders have unanimously endorsed the bank’s proposal to be listed in the Dar es Salaam Stock Exchange.

CRDB Bank Managing Director Dr charles Kimei assured delegates the bank, which is the first among local banks in assets and deposits, was ready for the challenge.

He said shareholders have been sensitized enough on the benefits of listing on the stock exchange after attending a sensitisation seminar capital and securities markets.

Dr Kimei told the meeting, attended by about 76 shareholders, that DSE enlistment would enable the bank and shareholders to buy and sell their shares through the open financial market.

CRDB Bank, which is ranked second in profits among local banks, may become the second bank to be listed on the stock exchange. NMB Bank recently announced it would be listed on DSE very soon. Currently, the bank has 39 branches across the country.

CRDB Bank shareholders bless DSE enlistment

Correspondent in Arusha
Daily News; Monday,June 25, 2007 @00:03
CRDB Bank’s shareholders have unanimously endorsed the bank’s proposal to be listed in the Dar es Salaam Stock Exchange.

The shareholders, who attended the bank’s Annual General Meeting at the Arusha International Conference Centre at the weekend, said the move would boost the bank’s capital.

Seconding the proposal, a shareholder from Mtwara, Saidi Mahunda, said he supported the idea, observing that the move would help the bank to be more competitive in the financial sector.

The Bank’s Director of Secretariat, Mr John-Baptiste Rugambo, floated the proposal for the bank to be listed in the DSE to members on Friday, saying the bank meets all the conditions set by the Capital Markets and Securities Authority (CMSA).

Mr Rugambo told shareholders that the bank was currently working on a new legal framework on the matter.

He told the meeting, however, that in order for the bank to be listed in the DSE, the constitution and regulations must be compatible with operations of the capital markets.

Conditions set by CMSA for a company to be listed on DSE include the requirement for a firm to have more than 1,000 shareholders. The CRDB Bank has 11,000 shareholders currently.

To qualify, a firm is required to sell primary shares through initial public offering (IPO). Memorandum and Articles of Association must allow it to have as many shareholders as possible.

Other conditions are that at least 25 per cent of the firm’s shares can be bought and sold to the public. The firm also must also be able to pay dividends and have a good business track record for at least three years.

CRDB Bank Managing Director Dr charles Kimei assured delegates the bank, which is the first among local banks in assets and deposits, was ready for the challenge.

He said shareholders have been sensitized enough on the benefits of listing on the stock exchange after attending a sensitisation seminar capital and securities markets.

Dr Kimei told the meeting, attended by about 76 shareholders, that DSE enlistment would enable the bank and shareholders to buy and sell their shares through the open financial market.

CRDB Bank, which is ranked second in profits among local banks, may become the second bank to be listed on the stock exchange. NMB Bank recently announced it would be listed on DSE very soon. Currently, the bank has 39 branches across the country.

Earlier, CMSA Chief Executive Dr Fratern Mboya said 10 firms have so far been listed on DSE since it started operations in 1998. Three of them are Kenyan-registered companies, which have also been listed on Uganda Stock Exchange.