Getbucks considers full ZSE delisting
GetBucks Microfinance Bank says it is now considering a full delisting of its securities on the Zimbabwe Stock Exchange (ZSE) having initially considered migrating to the Victoria Falls Stock Exchange (VFEX).
Last year, the microfinance bank was trading under caution due to negotiations to migrate to VFEX as part of the recapitalisation plans.
The microfinance bank has been negotiating for a US$5 million recapitalization to enable the bank to meet the required minimum threshold set by the Reserve Bank of Zimbabwe (RBZ).
However, in a notice on December 20, 2022 the bank advised the termination of the process to migrate to VFEX.
In a latest cautionary, the bank is now advising shareholders that it is now considering a full delisting from the ZSE.
“Shareholders are also advised that recapitalization negotiations are still ongoing. The full impact of the delisting and recapitalization is still being determined and if successful may have a material effect on the price of the securities,” the company said in a statement.
According to the central bank thresholds, Tier 3 deposit-taking microfinance banks are required to have US$5 million minimum capital while Tier 1 banks, large indigenous commercial banks and all foreign banks are required to have US$30 million minimum capital.
Tier 2 commercial banks, merchant banks, building societies, development banks, finance and discount houses are required to have a US$20 million minimum capital.
The GetBucks microfinance bank is a Zimbabwe-based financial service company with operating segments that include consumer Lending which provides individual public sector consumer loans.
The RBZ in its Monetary Policy Statement (MPS) extended to December 31, 2022 the deadline for non-compliant banks to meet the regulatory prescribed minimum capitalization levels largely due to the impact of the Covid 19 pandemic.
According to the MPS, out of 18 operating banking institutions, (excluding POSB with no minimum statutory requirement), 13 banks were compliant with the new minimum capital requirement for their chosen capital tier segment.
The Microfinance Bank grew its total assets by 13 percent to $2,5 billion for the half year ended June 30, 2022 compared to $2,2 billion as at December 31, 2021.
Profit before tax for the six months increased by 197 percent to close at $72,6 million compared to a loss of $74,5 million for the comparative period.-ebusinessweekly
