MICROFINANCE institution GetBucks Zimbabwe is inviting applications from parties interested to subscribe to its Initial Public Offering (IPO) ahead of its listing on the Zimbabwe Stock Exchange next week.
The money lending institution plans to list on the stock exchange after it recently launched a bid to raise $3,2 million through the IPO.
GetBucks started operations in the country four years ago.
“Applicants intending to subscribe to GetBucks Financial Services Limited’s IPO have been advised to approach any branch of NMB Bank to obtain prospectus and application forms.
“All payments for the subscription may be made at NMB Bank branch,” said the microfinance institution in a statement.
Mauritius registered GetBucks Limited owns 55 percent shareholding of the local unit while Zimbabwean investment firm, Brainworks owns 34,06 percent with the remainder held by various shareholders including pension funds and insurance companies.
The imminent listing would be the first on the Zimbabwe Stock Exchange in seven years since the IPO by ZECO Holdings, an engineering company owned by Phillip Chiyangwa.
Of the amount being sought by GetBucks Financial Services Limited, $2,9 million will be for working capital with about $300,000 for meeting costs associated with IPO and listing.
It is also hoped that the listing would go a long way in assisting the company to comply with new ownership requirements of a deposit –taking institution.
GetBucks Zimbabwe has 20,000 clients with 13 branches in major cities such as Harare, Bulawayo and Gweru.
The firm’s loan book stands at $11,6 million with the non-performing portion of that at two percent, much lower than the 15 percent in the banking sector.
GetBucks Zimbabwe also runs a successful promisory programme with pension funds.
The notes attract 15 percent interest per annum.