The bank is seeking to list at the Dar es Salaam Securities Exchange by year-end and later cross-list at the Nairobi Securities Exchange.
It will become the first Tanzanian lender to enter the Kenyan market after 73 per cent of its shareholders under the M Holdings Group agreed to buy 51 per cent stake in Oriental Commercial Bank.
The bank plans to raise $49.5 million in the next nine months in two private placements through an initial public offering (IPO) of its shares and a debt issue.
The aggressive capital raising by Bank M is intended to help it open new branches in Tanzania and set up the first mortgage financing company in the country.