South African banking group, Absa, plans to hold an initial public offering (IPO) for Tanzania’s National Bank of Commerce (NBC), in which it has a 55.5% stake, and list it on the Dar es Salaam Stock Exchange.

Bloomberg quoted Absa chief executive officer, Maria Ramos, saying that the IPO would dilute the Tanzanian government’s stake and is subject to regulatory approvals.

According to Ramos, the listing should take place later in the year and would leave Absa with a 55% stake in the lender.

In a separate interview with CNBC Africa at the World Economic Forum on Africa, Ramos said that NBC is currently the third largest bank in Tanzania out of a total of 34 registered banks.