Abay Bank, one of the private banks in Ethiopia, is going to float shares worth 200 million birr to the public as of this month.

The bank is generating the outstanding amount of 174 million birr of initial start up capital by selling shares which have been floated for the last two years.

According to Mesenbet Shenkut, president of Abay Bank, the authorized amount of capital will be fulfilled in the coming week.

The bank’s growth of capital from 300 million birr to half a billion birr was approved by shareholders at the general assembly in March.

Currently the bank has nine branches. It is planning to open five more branches in the coming two months and it will have opened 14 additional branches by June 2012. 

Abay has already installed Flexcube core banking solutions to automate its banking services and the system will also help the bank to undertake the card banking system changes easily.

Abay's 817 shareholders fewer than those of other recently established banks. Among major shareholders of the bank are Tikur Abay Transport, Dashen Brewery, Amhara Development Association, Amhara Cooperatives Union, Amhara Water Works Construction Enterprise, Zeleke Mechanized Agricultural Development Enterprise and farmers.

Other shareholders include Haile Gebre-selassie, Afewerk Tekle, Bizuayehu Tadele, Aquasafe Plc, KK Plc.

Source: Capital