Speaking during investor briefing on Wednesday, Family Bank Chairman Wilfred Kiboro said the management is at the moment is focusing growth plans that will see shareholders gain maximum value once listed at the bourse/CFM
Speaking during investor briefing on Wednesday, Family Bank Chairman Wilfred Kiboro said the management is at the moment is focusing growth plans that will see shareholders gain maximum value once listed at the bourse.
“We will list, but we want to do that when existing shareholders will get the maximum value for their shares. In the last five years the share has grown by about 800percent. So basically, if we had listed two or three years ago as people were asking us to do, the value the shareholders are getting would be less,” Kiboro said.
He added that at the moment the bank’s shareholders have also not requested for listing.
“When you have an organisation and it requires more capital, the first people you ask for that capital are your shareholders. Currently our shareholders have not told us they are tired of giving us the capital we require,” the chairman added.
“Its not that we fear to go to the market but you’ve got to push the company to attain certain benchmarks before you then take it for listing,” Family Bank Managing Director Peter Munyiri commented.
The bank is at the moment hoping to raise close to Sh4 billion through an ongoing Rights Issue to meet the new Central Bank’s capital adequacy ratio rules that come to effect in January 2015.
The regulator want the banks to raise their buffers by up to 2.5 percent of their deposits a move mainly aimed at cushioning institutions in times of economic stress.
The proceeds from the rights issue will also be used for its local expansion plans as well as up scaling its technology capacity.
“Right now 78 branches are fully operational and another five branches, is working progress. Into next year, we target to do new investments; minimum 12 additional branches,” Munyiri said.
The bank has for now shelved its regional expansion plans upto 2016 as it seeks enough capital.
