There is a high demand for loans in the country as the industry is unable to service the market, micro-finance institution GetBucks has said.
BY TARISAI MANDIZHA
The fintech company is set to debut on the Zimbabwe Stock Exchange (ZSE) after announcing its Initial Public Offering to raise $3,2 million. The IPO opened on December 7 and 93 567 251 ordinary shares in the company at a subscription price of $0,0342 per share are on offer.
GetBucks founding managing director Walter Kambwanji said the ultimate goal was to deliver a basket of financial products that meet most of the financial needs of the under-banked, including financial products such as banking and lending.
“We think there is a scope to grow that market. At the moment there is high demand for loans in the country, as a result the industry has not been performing,” Kambwanji said.
He said GetBucks services close to 20 000 customers and the company offers an average loan size of $500.
GetBucks had a loan book of $11 600 480 as at June 30 2015.
At the conclusion of the IPO, the entire issued share capital of GetBucks Zimbabwe of 1 093 567 251 ordinary shares will be listed on the ZSE on January 15.
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GetBucks was early this year licenced to take deposits. Kambwanji said the company was finalising the infrastructural and operational requirements before commencing banking operations.
According to the Reserve Bank of Zimbabwe as at September 30 2015, there were 116 registered micro-finance institutions.
GetBucks is owned 55% by GetBucks Limited, a South African Company and a 45% by investment holding firm Brainwork’s Capital Management.
Kambwanji said the rationale for listing on ZSE was to strengthen and enhance the visibility of the GetBucks brand to both the public and private sectors, leading to new business opportunities, attracting focused and permanent capital through an IPO and access to more appropriate risk-adjusted cost of capital (debt and equity) than GetBucks has been able to obtain as a private company.
He said the company has paid a cumulative dividend of $2 million in the last two years.
GetBucks commenced operations in 2012 as a credit only micro-finance institution and has grown over the years.
As at June 30, 2015, net interest income was up 141% to $5,8 million from the same period last year driven by the growth in the company’s loan book.
Net fee income increased to $2,6 million in 2015 from $1,1 million during the same period last year driven by increases in administration and origination fees.
