Shares of Tanzania's CRDB Bank rose 33 percent on listing on the Dar es Salaam Stock Exchange on Wednesday, after an initial public offering involving the sale of 18.8 billion shillings ($14.4 million) worth of stock which represents about 7 percent of its shareholding.
The shares closed at TZS 200 (US$0.15) having been offered at TZS150 (US$0.11).
The IPO, in which 125.4 million shares or 7 percent of the total were sold, was oversubscribed by 170 percent. The investment arm of Danish development agency DANIDA offloaded a 5 percent stake, leaving it holding 22.6 percent of the bank.
CRDB, which says it is Tanzania's leading bank in terms of assets and loans, expects pretax profit to jump 19 percent to 71.43 billion shillings in 2009. It also sees net interest income rising to 106.15 billion shillings from 91.16 billion last year.
The bank will use the money raised in the IPO to expand its network from its current 58 branches, install automated teller machines and improve its IT infrastructure.
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