Major Ethiopian banks decided to raise their paid up capital to meet the directive by the central bank. The banks could offer up to 2.3 million shares worth 2.7 billion birr in total.
Nine of the 14 banks operating at the present expect to meet the target sum of 500 million birr by contributing their dividends as well as offering equity on the market.
Awash, Dashen, NIB, United and Wegagen banks have already met the requirements with Wegagen topping the list with 779.3 million Br in paid-up capital.
Should the remaining banks decide to make up the difference by floating shares the largest number of shares will be offered by Addis International and Berhan International banks.Abay Bank with a share value of 50,000 birr will only need to float 7,484 shares.
Lion Bank with 292.7 million Br in paid-up capital is deliberating on whether to make its shares public or to offer them exclusively to shareholders.
Recent public interest in bank shares seems to bode well for the banks expecting to sell shares to retain their place in the sector according to experts. The public’s interest in purchasing bank shares was particularly exhibited by the share auctions held by United and NIB banks.
United Bank auctioned off 133,477 shares earning 13.3 million Br in just a week with the shares selling for as much as 60pc more than their par value.
An auction of Nib International Bank shares held due to a legal dispute saw the 173 shares offered at 131% more than their par value.
Source Addis Fortune
