NMBZ is listed on the Zimbabwe and London stock exchanges.
Full fungibility means NMBZ’s shares will trade interchangeably between the Zimbabwe Stock Exchange and the London bourse, where the group has a secondary listing.
NMBZ also said it plans to raise US$14,8 million fresh capital to ensure compliance of its banking unit NMB Bank Limited (NMB Bank) with the Reserve Bank of Zimbabwe (RBZ)’s new minimum capital requirements.
The funds will be raised through the placement to strategic foreign investors of 103 714 287 new ordinary shares in the share capital of the company at an issue price of 0,143 cents per share.
“The company needs additional capital to increase the capital base of its banking subsidiary to accelerate its organic growth trajectory to ensure compliance with the new minimum capital requirements,” said NMBZ company secretary Violet Mutandwa.
The proposed recapitalisation is in response to the minimum capital thresholds, set by the RBZ governor Gideon Gono in August last year, requiring banks to increase their capital bases to at least US$100 million by June 2014 in a phased manner.
NMB Bank has already complied with the first phase of US$25 million, whose deadline expired on December 31, 2012.
The second phase deadline is June 30 this year whereby banks are required to have US$50 million.
The financial institutions will then increase their minimum equity capital to US$75 million by December 31, 2013, and eventually fully comply by June 2014.
NMBZ’s recapitalisation plan is, however, subject to shareholders’ approval.
The group’s shareholders are expected to meet on February 19 at an extraordinary general meeting (EGM), in which they will also consider the consolidation of the company’s ordinary share capital.
“Members are requested to consider…that the authorised share capital of the company be and hereby consolidated from the existing authorised share capital comprising 3,5 billion ordinary shares of US$0,000028 nominal value each, to 350 million ordinary shares of US$0,000028 nominal value each, and that any fractional shares arising from the said share capital consolidation be rounded up to one share by capitalising the company’s reserves,” said Mutandwa.
She said NMBZ also sought to raise its authorised share capital from US$98 000 comprising 350 million ordinary shares to US$168 000 comprising 600 million ordinary shares.
Post published in: Business