Ethiopia's United Bank issued 18,514 unsubscribed shares for sell on a public auction the past week. The Bank earned 2.9 million Ethiopian Birr from the auction two weeks ago, bringing revenues 76pc above the par value of the shares issued.
“The current sale of leftover subscribed shares is necessary to meet the 600 million Br paid up capital target,” Berhanu Getaneh, president of the bank said. “We are planning further share sales with the aim of reaching one billion Br in paid up capital,” he told Fortune.
The auction closed after a week and a half, has drawn 73 offers, from which the 13 highest were declared winners. The person that made the highest offer, 176 Br, bought 1000 shares, the minimum permissible by tender requirements. The lowest accepted bid was 151 Br. The maximum number of shares sold to a single buyer was 2,250.
“The increase, by 76pc, shows the value and trustworthiness of United, and in the absence of a secondary share market can be indicative of demand,” Berhanu told Fortune.
The bank will hold an extraordinary shareholders’ meeting within the next three months to deliberate on how many shares issue each year to reach the one billion Birr target, according to Berhanu.
United Bank reported 297.8 million Birr in profit after tax in 2011/12 and an earnings per share (EPS) of 52.8 Br. and a 36 percent dividend for fully paid shares.
Source: Fortune
