NAIROBI, Kenya, Jun 18 – Plans by Family Bank to list on the Nairobi Stock Exchange (NSE) are still on course, according to its Chief Executive Officer Peter Kinyanjui.
Mr Kinyanjui said they are monitoring the currently depressed market with hopes that it would have picked up by next year when they intend to hit the NSE.
“Since you are going to the NSE to raise funds you will not go there just for the sake; the timing has to be right,” he said.
Mr Kinyanjui said the bank will be offloading between 25 and 30 percent of its stake – which is currently fully family-owned – at the NSE through the creation of new shares.
He however could not disclose the exact amount the bank was hoping to raise, clarifying that this would highly depend on the markets dynamics.
“Last year you could have raised Sh5 billion from just offloading 25 percent of your stake but now you can barely raise Sh1.5 billion from the same,” Mr Kinyanjui observed.
He said the bank hopes to use the funds raised to expand its network and enhance infrastructure.
Mr Kinyanjui noted that despite most banks embarking on an effort to expand through a branchless network, Family Bank will grow its network both physically and on-line.
“This is a very dynamic environment. So our expansion program will keep on changing according to the environment’s dynamics,” he explained.
He observed that the two-pronged approach is the best for the bank which is yet to spread its network nationwide.
The bank has 50 branches countrywide.
The NSE 20 Share Index a measure of market performance hit a record high 5061.77 points in October 2006 but has tumbled in recent months, reaching 3087.74 points on Wednesday.