Zemen Bank sold 35 million birr worth of shares in six hours last week. The shares were offered to existing shareholders as per a decision reached at the annual meeting of the bank.

The annual meeting held this past September agreed to increase the capital of the bank by 100 million birr with remaining shares, after shareholders were offered shares in proportion to their existing holdings, to be sold in the month of December.

The bank management had expected to complete the sale of the shares in 30 days according to sources at the bank.

An unexpected demand for the shares, however, resulted in the sale ending on the first day the shares were put on sale.

The administration of the bank is pleased with the outcome of the sales which is an expression of the shareholders faith in the bank’s continued strong performance said an anonymous member of the management team.

Zemen Bank grossed 121 million birr and earned its shareholders an industry high of 58% per share this fiscal year. The high rate of return to shareholders is a reason for the high demands seen for Zemen Bank shares note industry observers.

The bank increased its paid up capital to 250 million from 150 million through the sale of shares. Zemen Bank’s total capital has increased to 300 million birr according to sources at the bank.   

It is to be remembered that the National Bank of Ethiopia raised the minimum paid up capital for commercial banks to 500 million birr.

Source: The Reporter