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Wednesday, August 6, 2008

Dar es salaam bank IPO oversubcribed by 350%

Ok, I know this story is a few weeks old, but frankly it just came to my attention, I missed it before. Anyway, I thought it might be worth sharing it with the rest of the forum
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By Mnaku Mbani

The initial public offering (IPO) of the Dar es Salaam Community Bank (DCB) has been oversubscribed by more than 350 per cent.

However, it is unlikely that shareholders who bought shares during the IPO will be refunded.

DCB board chairman Paul Rupia said Sh5.2 billion was recorded from the offer to the public between early last month and last week.

DCB wanted to raise Sh1.5 billion to implement its five-year strategic plan (2007-2011).

More...


[SOURCE: THE CITIZEN]

3 comments:

Mliakuvana said...

Is it me or is this stock market thing working well and many of us don't know jack schiit about it, and/or we don't want to learn from and about it?

Someone or some people out there are making a killing and laughing all the way to the bank!

Anonymous said...

DSM Community Bank is actually not listed on Dar Stock Exch. People just buy shares when new ones are offered (i.e. IPO) as was the case in the story above or from a current shareholder through direct exchange or via a 3rd party (usually a broker). This is what we called unlisted stock

Anonymous said...

Behind the table IPO, that can be too risk or it can be so sweet in the future.
The problem of this kind of ownership is liquidity, you can't trade your shares unless you find someone who is willing to buy. Or unless it's stated in the contract otherwise.

The advantage of this kind of IPO are few people own the company, so it's easy to make your voice heard.

I will lather lend the company in the form of debt (corporate Bond), because i can be able to receive coupon payment annual, and at the end of the day i will be able to get my face value. Lather, than buying the company which is unlisted to the DSE. Also, it operates in its own rules and regulation because it is not public company.

Mdau 1