KCB rights issue oversubscribed by 46 pc

August 7, 2008
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, NAIROBI, August 7 – The Kenya Commercial Bank (KCB) rights issue has been oversubscribed by 46.5 percent, the bank has said.

KCB had on offer 221.78 million shares with the intention to raise Sh5.5 billion for expansion purposes.

“We raised Sh8.1 billion against our target Sh5.5 billion which I must say is significant,” the Bank’s Chairman Peter Muthoka said.

“The oversubscription reflects the confidence shareholders and other investors have in the future of KCB."

Muthoka said shareholders who applied for additional rights will receive an allotment of 25.02 percent of shares applied for on a pro-rata basis.

Further explaining that all refunds both by electronic transfers and bankers cheques will be effected on the August 15.

The shares sale to raise money to fund the lender\’s expansion opened June 18 and closed July 23.

The new shares begin trading on the Nairobi Stock Exchange on August 25, Muthoka said.

The lender\’s next major plan is to have its shares traded on the Uganda Securities Exchange and Tanzania\’s Dar-es-salaam Stock Exchange, Muthoka said.

He said the bank had constituted advisory teams for both markets and was sending them a week’s time to meet regulators to discuss the modalities for cross listing.

"We are optimistic that KCB shares will be available to investors in Uganda and Tanzania in the course of the year," Muthoka said.

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