CRDB gears up to list shares on DSE

The CRDB bank has started preparations to list its shares on the Dar es Salaam Stock Exchange (DSE), the management has said. The bank hopes that when all things go as planned; its shares would be traded on the bourse before October, next year.

Speaking to `The Guardian on Sunday` on CRDB Bank Family Day in Dar es Salaam last Sunday, the bank`s Managing Director, Dr Charles Kimei, said already the recommendations for listing the shares on the bourse have been forwarded to the board of directors and shareholders for approval.

``Both the Board and shareholders have initially accepted; we will send the recommendations to the shareholders again next year for final approval,? said Dr Kimei.

He said once approved, they would start procedures for listing shares which would take not less than seven months.

Dr. Kimei said the bank has met nearly all conditions set by the Capital Markets and Securities Authority (CMSA) to be listed on DSE and was currently working on a new legal framework on the matter.

These conditions, according to him, include changing the bank?s constitution and regulations to make them compatible with operations of the capital markets.

Conditions set by CMSA for a company to be listed on DSE include the firm in question to have more than 1,000 shareholders.

CRDB Bank currently has 11,000 shareholders. Apart from CRDB Bank, another local bank, NMB, has also announced its intention to be listed.

Minister for Finance Zakia Meghji announced in May this year that the government would soon sell to members of the public 21 out of the 51 per cent shares it owns in the National Microfinance Bank (NMB).

Minister Meghji, who could not disclose the exact date for the sale, said, however, that exercise would start ?very soon.?

She said the government?s move was calculated at enabling more people to own shares and improve their economic status.

Companies currently listed on the DSE are Tanzania Oxygen (TOL) Tanzania Breweries Limited, (TBL), Tanzania Tea Packers (TATEPA), Tanzania Cigarette Company, (TCC) , Simba Cement, Swiss port Tanzania and Twiga Cement.

Foreign firms registered at the stock exchange are Kenya Airways, Jubilee Holdings (Jubilee Insurance) and East African Breweries Limited.

SOURCE: Sunday Observer