Stanbic Bank share sales start tomorrow
Nov 22, 2006
STANBIC Bank will tomorrow start selling 20% shares to the public following approval by the Capital Markets Authority and the Uganda Securities Exchange (USE), the regulators and operators respectively.
By Sylvia Juuko
STANBIC Bank will tomorrow start selling 20% shares to the public following approval by the Capital Markets Authority and the Uganda Securities Exchange (USE), the regulators and operators respectively.
Kitili Mbathi, the managing director, said on Tuesday that over one billion shares would be unveiled to the market through the Initial Public Offer (IPO). Each shares will go for sh70, Mbathi said.
“As part of the sale agreement with Bank of Uganda, the Government would sell its 10% shares in Stanbic Bank while Standard Bank Group was to also sell another 10%.
“This is the basis of the IPO we are working on right now,†Mbathi said.
He said Stanbic hoped to raise up to sh70b from the sale which would give Ugandans an opportunity to own shares in the bank to benefit from the bank’s profitability.
“The objective of the share issue from the Government’s perspective and the Stanbic perspective is to have the ownership as widely spread as possible.
“We would like to see as many Ugandans as possible purchasing shares in this issue,†Mbathi said.
He said the IPO would run from November 24 to December 22.
The listing onto the USE is slated for January 25.
Buyers will apply for multiples of 1,000 shares, according to Mbathi. Stanbic Bank has posted positive half-year performance with profits after tax recorded at sh18.56b and total assets amounting to sh1.02 trillion.
Mbathi forecast good results for 2006.
“We expect good results for 2006.
“In terms of results according to the prospectus, our projected profitability will be sh59b,†he said.
Stanbic Bank is part of South African-based leading banking and financial services group, Standard Bank.
Stanbic Bank will become the second listed bank on the eight-year-old bourse after Bank of Baroda.
The bank will also become the ninth overall equity listed after Nile Bank pulled out its IPO at the eleventh hour due to a reported buyout interest from Barclays Bank.
FULL INTERVIEW:
Stanbic shares at sh70 each
Stanbic Bank, the largest commercial bank in terms of capital and branch network, starts share sale through an Initial Public Offer (IPO) tomorrow. Up to one billion shares are up for grabs. Sylvia Juuko talked to Kitili Mbathi, the managing director, about the IPO.
Question: Who is Stanbic Bank?
Answer: Stanbic Bank came into being in 1992 when Standard Bank Group purchased the Grindlay’s Africa network which had banks in 10 countries including Uganda.
Stanbic was a two-branch corporate bank at the time and it was a profitable bank focused in Kampala.
In 2002, we took over Uganda Commercial Bank (UCB) and merged to become one entity with the largest footprint in terms of branch presence all over the country.
As part of the agreement with Bank of Uganda at the time of purchase, the Government would sell its 10% shareholding while Standard Bank Group would sell another 10% to the public through the stock exchange.
This is the basis of the IPO we are working on.
When will you launch the IPO?
We are looking to launch on Friday November 24.
We will be offering just over a billion shares at sh70 per share.
The objective of the share issue from the Government perspective and Stanbic Bank’s perspective is to have the ownership as widely spread as possible. We would like to see as many Ugandans purchasing shares in this issue.
The minimum number of shares an individual will be able to apply for is 1,000 shares and multiples of 1,000 shares.
Why was the IPO delayed?
I don’t know where media got that date because I wouldn’t say there has been a delay at all.
We were expecting to invite you for a press launch this week to tell you once we have received the approval.
We received the approval from the Capital Markets Authority on Tuesday.
That of the Uganda Securities Exchange came on last week.
How much money will the IPO raise? How long is the offer period?
We hope to raise just over sh70b. The offer period will run from November 24 to December 22.
The targeted listing date will be January 25.
How will the IPO and eventual listing impact on Stanbic operations?
I think it gives our customers the opportunity to benefit in the fortunes of Stanbic Bank.
The bank has been doing well over the past years .
It will give our customers the opportunity to participate.
It also gives the bank the opportunity to gain a real foothold in the customer base around the country and people who do not bank with us who are shareholders, we will be encouraging to become customers as well.
What is Stanbic’s financial performance?
According to the latest half-year audited figures, as of June 30, 2006, Stanbic’s profits after tax were sh18.56b.
Our total assets on the other hand are sh1.02 trillion as at June 30 2006.
We have 70 points of representation which are branches and agencies, the largest number of customers of any bank in Uganda.
Will shareholders get dividends next year?
One attractive feature of this issue is that although the shares are being offered in November-December and the shares don’t actually get listed until January, they will benefit in full from the financial performance of the bank in 2006.
They will be eligible for any dividend that will be declared when the bank hold its annual general meeting for the performance of the bank in 2006 although they weren’t shareholders then.
What are your projections regarding the banks performance this year?
We expect good results for 2006. According to the prospectus, our projected profitability in 2006 will be sh59b.
This will be driven by our two major areas of business; corporate and investment banking which deals with corporations and the personal and business banking.
We have seen quite a few large infrastructure transactions which are starting to be completed.
So we expect to see some growth there.
On the personal and business banking side, we have been involved in a personal loan promotion and we are seeing a good uptake in people coming to take advantage of these on offer.
What should customers expect?We have a lot of exciting new products which will be coming up early next year.
We have started issuing retail mortgages on a selected basis
But we expect to roll it out in the first quarter of next year.
We expect to expand our business in vehicle and asset finance.
It has mainly been focused on the corporate market but we would like to bring it down so that more of our customers can benefit.
We are also going to focus more on the small and medium-sized business.
We are also looking at electronic ways to improve our ability to get give customer service.
Other products like debit cards have already been rolled out.
We will be looking selectively at credit cards sometime next year.
STANBIC Bank will tomorrow start selling 20% shares to the public following approval by the Capital Markets Authority and the Uganda Securities Exchange (USE), the regulators and operators respectively.
Kitili Mbathi, the managing director, said on Tuesday that over one billion shares would be unveiled to the market through the Initial Public Offer (IPO). Each shares will go for sh70, Mbathi said.
“As part of the sale agreement with Bank of Uganda, the Government would sell its 10% shares in Stanbic Bank while Standard Bank Group was to also sell another 10%.
“This is the basis of the IPO we are working on right now,†Mbathi said.
He said Stanbic hoped to raise up to sh70b from the sale which would give Ugandans an opportunity to own shares in the bank to benefit from the bank’s profitability.
“The objective of the share issue from the Government’s perspective and the Stanbic perspective is to have the ownership as widely spread as possible.
“We would like to see as many Ugandans as possible purchasing shares in this issue,†Mbathi said.
He said the IPO would run from November 24 to December 22.
The listing onto the USE is slated for January 25.
Buyers will apply for multiples of 1,000 shares, according to Mbathi. Stanbic Bank has posted positive half-year performance with profits after tax recorded at sh18.56b and total assets amounting to sh1.02 trillion.
Mbathi forecast good results for 2006.
“We expect good results for 2006.
“In terms of results according to the prospectus, our projected profitability will be sh59b,†he said.
Stanbic Bank is part of South African-based leading banking and financial services group, Standard Bank.
Stanbic Bank will become the second listed bank on the eight-year-old bourse after Bank of Baroda.
The bank will also become the ninth overall equity listed after Nile Bank pulled out its IPO at the eleventh hour due to a reported buyout interest from Barclays Bank.
FULL INTERVIEW:
Stanbic shares at sh70 each
Stanbic Bank, the largest commercial bank in terms of capital and branch network, starts share sale through an Initial Public Offer (IPO) tomorrow. Up to one billion shares are up for grabs. Sylvia Juuko talked to Kitili Mbathi, the managing director, about the IPO.
Question: Who is Stanbic Bank?
Answer: Stanbic Bank came into being in 1992 when Standard Bank Group purchased the Grindlay’s Africa network which had banks in 10 countries including Uganda.
Stanbic was a two-branch corporate bank at the time and it was a profitable bank focused in Kampala.
In 2002, we took over Uganda Commercial Bank (UCB) and merged to become one entity with the largest footprint in terms of branch presence all over the country.
As part of the agreement with Bank of Uganda at the time of purchase, the Government would sell its 10% shareholding while Standard Bank Group would sell another 10% to the public through the stock exchange.
This is the basis of the IPO we are working on.
When will you launch the IPO?
We are looking to launch on Friday November 24.
We will be offering just over a billion shares at sh70 per share.
The objective of the share issue from the Government perspective and Stanbic Bank’s perspective is to have the ownership as widely spread as possible. We would like to see as many Ugandans purchasing shares in this issue.
The minimum number of shares an individual will be able to apply for is 1,000 shares and multiples of 1,000 shares.
Why was the IPO delayed?
I don’t know where media got that date because I wouldn’t say there has been a delay at all.
We were expecting to invite you for a press launch this week to tell you once we have received the approval.
We received the approval from the Capital Markets Authority on Tuesday.
That of the Uganda Securities Exchange came on last week.
How much money will the IPO raise? How long is the offer period?
We hope to raise just over sh70b. The offer period will run from November 24 to December 22.
The targeted listing date will be January 25.
How will the IPO and eventual listing impact on Stanbic operations?
I think it gives our customers the opportunity to benefit in the fortunes of Stanbic Bank.
The bank has been doing well over the past years .
It will give our customers the opportunity to participate.
It also gives the bank the opportunity to gain a real foothold in the customer base around the country and people who do not bank with us who are shareholders, we will be encouraging to become customers as well.
What is Stanbic’s financial performance?
According to the latest half-year audited figures, as of June 30, 2006, Stanbic’s profits after tax were sh18.56b.
Our total assets on the other hand are sh1.02 trillion as at June 30 2006.
We have 70 points of representation which are branches and agencies, the largest number of customers of any bank in Uganda.
Will shareholders get dividends next year?
One attractive feature of this issue is that although the shares are being offered in November-December and the shares don’t actually get listed until January, they will benefit in full from the financial performance of the bank in 2006.
They will be eligible for any dividend that will be declared when the bank hold its annual general meeting for the performance of the bank in 2006 although they weren’t shareholders then.
What are your projections regarding the banks performance this year?
We expect good results for 2006. According to the prospectus, our projected profitability in 2006 will be sh59b.
This will be driven by our two major areas of business; corporate and investment banking which deals with corporations and the personal and business banking.
We have seen quite a few large infrastructure transactions which are starting to be completed.
So we expect to see some growth there.
On the personal and business banking side, we have been involved in a personal loan promotion and we are seeing a good uptake in people coming to take advantage of these on offer.
What should customers expect?We have a lot of exciting new products which will be coming up early next year.
We have started issuing retail mortgages on a selected basis
But we expect to roll it out in the first quarter of next year.
We expect to expand our business in vehicle and asset finance.
It has mainly been focused on the corporate market but we would like to bring it down so that more of our customers can benefit.
We are also going to focus more on the small and medium-sized business.
We are also looking at electronic ways to improve our ability to get give customer service.
Other products like debit cards have already been rolled out.
We will be looking selectively at credit cards sometime next year.