First Bank surprises shareholders


Ngoni Chanakira

FIRST Banking Corporation Ltd (First Bank) last week gave its shareholders a special treat when it offered them shares at $16 instead of the $18 currently being offered.<
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The financial institution was listed on the Zimbabwe Stock Exchange (ZSE) after a successful Initial Public Offer (IPO) on June 11 2001.


The bank, led by Livingstone Gwata, has as some of its shareholders NicozDiamond Insurance, Fidelity Life, Ukubambana/Kubatana Investments, and Zimre.


Pursuant to the IPO, and subsequent listing on the bourse the authorised share capital of the company was increased from $160 million, divided into 70 million ordinary shares of $2 each and 10 million redeemable, variable, cumulative, convertible preference shares of $2 each to $300 million.


These were divided into 1 400 million ordinary shares of 20 cents each and $100 million redeemable, variable rate, cumulative, convertible preference shares of 20 cents each in April 2001.


The issued and fully paid share capital during this time increased from $132 666 667 divided into 59 333 333 ordinary shares of $2 each and 7 million redeemable, variable rate, cumulative convertible preference shares of $2 each to $271 695 547,40 made up of 1 358 477 727 ordinary shares of $20 each.


Stockbrokers said the share offer last week was a boon to First Bank.

They said the stock market had performed quite well and also worth noting “is the special bargain of 297 457 089 First Bank shares at $16, a transaction in which 22% of the bank’s issued capital changed hands.


In an interview ZSE chief executive officer Emmanuel Munyukwi said the stock market was directionless as individuals were still awaiting the RBZ’s new monetary policy scheduled for the end of either this month or next.


“Individuals are just waiting to see what will happen,” Munyukwi said. “The market is however, up and down at the moment.”


Analysts said First Bank would continue to trade at normal levels.

Another counter, Powerspeed Ltd last week led the list of losers as its share price took an 89% knock, following a successful 10-for-one share split.


The split increased the number of shares to 500 million ordinary shares with a nominal value of 5 cents a share from 50 million ordinary shares of a nominal value of 50 cents a share.