GetBucks Limited announced today that its shareholders have approved a rights issues to raise ZWL$5 million to boost its capital base.

Last week, the group held an extraordinary general meeting to seek shareholder approval for two key proposals.

The company was looking, first, to place 350 million shares under the control of its directors and, second, to establish an employee share option scheme.

The latter was however turned down.

In respect of the capital raise, GetBucks will issue about 69.6 million shares with a nominal value of RTGS$0.0001 each up for subscription at a price of ZWL$0.072 at a ratio of 6.36 new shares for every 100 shares held.

“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,” said GetBucks chairman, Rungamo Mbire, justifying the capital raising initiative.

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

The rights offer opens this Wednesday and closes on July 19, 2019.

“GetBucks Zimbabwe will apply the net proceeds of the rights issue to increase its working capital and finance the expansion of operations and underwrite more financial products particularly to the productive sectors.”

GetBucks Limited and Zahra Investment Trust (ZIT) will underwrite the offer.

ZIT is a Zimbabwean trust that owns 51.6 percent shareholding in GetBucks Zimbabwe.