GetBucks rights offer garners 51pc subscription

LISTED micro-financier, GetBucks Limited said on Monday its rights offer, to raise ZWL$5 million to increase its capital base, was subscribed by 51 percent.

The firm had placed 69,6 million shares with a nominal value of RTGS$0,0001 each up for subscription at a price of ZWL$0,072, at a ratio of 6.36 new shares for every 100 shares held.

Results of the offer, which opened on 26 June and closed on July 19, show that 35 457 871 of the shares, amounting to 50,98 percent, were taken up by shareholders.

The remaining shares were taken up by firms that underwrote the offer, with GetBucks Limited snapping up 24,56 million shares while Zahra Investment Trust (ZIT) took 9,53 million.

“The rights offer shares were issued and listed on the Zimbabwe Stock Exchange with effect from Monday July 29, 2019,”said company secretary Paul Soko.

The company’s new shareholding structure following the rights offer could not be immediately obtained. Before the offer, ZIT held a 51,6 percent shareholding in GetBucks Zimbabwe.

Justifying the capital raising venture, Getbucks chairman Rungamo Mbire had said the move would allow the financial institution “to grow its loan offerings.”

“GetBucks Zimbabwe will apply the net proceeds of the rights issue to increase its working capital and finance the expansion of operations and underwrite more financial products particularly to the productive sectors,” Mr Mbire said at the time.

GetBucks is a deposit taking micro-financing institution, which employs 66 people and operates 14 branches across the country.

The institution is currently servicing an estimated 15,000 clients. - New Ziana.