Micro-financier, GetBucks Limited says it is looking to raise ZW$5 million (circa US$950 570) through a rights issue.

The broader strategy is to boost its capital base and fund operations.

The group said the capital raise initiative will require shareholder approval at an extraordinary general meeting (EGM) set for June 21.

GetBucks will also seek to get the nod to establish an employee share option scheme and place 350 million shares under the control of its directors.

In respect of the proposal GetBucks said it will issue 69.6 million shares with a nominal value of RTGS$0.0001 each up for subscription at a price of RTGS$0.072 at a ratio of 6.36 new shares for every 100 shares held.

The financial services provider said it had in the past few years seen a growth in demand for loans.
“The bank requires new capital injection in order to continue to grow its loan offerings to productive sectors of the economy namely agriculture and manufacturing,” GetBucks said.

“This new capital will also allow the bank assets to grow through a mix of funding including debts and deposits.”

GetBucks Limited’s Zahra Investment Trust will underwrite the offer.

A majority vote of 50 percent plus one is required at the EGM for the capital mobilising transaction to sail through.

For its employee share option scheme, GetBucks said it was seeking to place about 100 million shares under the initiative.