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Kenya

Coop Bank IPO gains momentum

NAIROBI, September 10 – The Co-operative Bank Initial Public Offering lead transaction advisor, Dyer and Blair Investment Bank together and the transaction legal and documentation committee on Wednesday presented the draft Information memorandum to the regulator, Capital Markets Authority (CMA).

Dyer and Blair Investment Bank Joint Managing Director Hassan Mohammed said the 215 page document has been checked for all the CMA requirements and the transaction team hopes to receive comments after one week

The Cooperative bank initial public offer billed the largest after the just concluded Safaricom IPO seeks to raise Sh10 billion.

Speaking during a courtesy call to CMA Chief Executive Stella Kilonzo by the banks top management and the transaction team, the \’s Bank’s Managing Director Gideon Muriuki said the cash raised will finance its mortgage products, ICT infrastructure and the expansion of its branch network.

Muriuki said: “We want to allow ordinary Kenyans share in the vision and the success of this Kenyan institution and we hope that after presenting the information memorandum to the regulators we will have a quick response so that we can go to the market before the end of the year”.

He said that to sustain the seven years of momentous growth the bank has seen, the institution is now in top gear to raise the additional capital.

“Upon the approval by the CMA, we invite all Kenyans to plan and invest in the Co-operative Bank to share in the continuously growing fortunes of the bank,” added Muriuki.

At the same time the managing director revealed that the bank has hired a additional 150 employees who will be working round the clock at the newly set up IPO processing center at Upper Hill, Nairobi.

Recently the bank announced a 50% rise in its half year pre-tax profit at Sh1.7 billion indicating that it will post the Sh3 billion its targeting by the end of the year.

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Co-op Bank, one of Kenya’s top 10 banks by assets and deposit and its profitability has been improving in the last six years hitting Sh2.32 billion in 2007, an 85 per cent rise from Sh1.26 billion realised the previous year.

Market rules indicate that an institution needs to have made a profit in at least three of the last five years to qualify for listing at the Nairobi Stock Exchange.

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