NAIROBI, Kenya, Apr 9 -The Capital Markets Authority (CMA) has approved Equity Banks proposal to split its shares at the ratio of 10:1.
Shareholders of the bank approved the split on the March 26 during the bank’s Annual General Meeting.
“The CMA has approved the split and the recommended date of commencement of trading is 14th April 2009,”a statement from the Corporate Strategy Director and Company Secretary Mary Wamae read.
Speaking during Equity’s Annual General Meeting, Bank Chief Executive Dr James Mwangi said the board of directors felt the split was necessary to make the share more accessible in the market.
“When you have a share that is looking overpriced in perception it undermines its own demand in the market and the only solution is to offer a bonus or split so you are able to bring proportionately the price down,” Dr Mwangi supposed.
The split will see the banks shares rise from 370,277,702 ordinary shares of Sh5 nominal value to 3,702,777,702 ordinary shares of Sh0.50 nominal value.
By close of business on Wednesday the share was trading at Sh18.45.