Kenyan bank rights issue on a roll

July 9, 2010
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, NAIROBI, Kenya, Jul 9 – Over 120 million government rights in Kenya Commercial Bank (KCB) were taken up at the Nairobi Stock Exchange (NSE) on Friday, according to the transaction’s Lead Sponsoring Stockbroker.

Standard Investment Bank Executive Director Job Kihumba said that this was a good indication that more rights will be bought by end of Monday July 12, when the trading is expected to close.

KCB Group Chief Executive Officer Martin Oduor-Otieno termed this as exciting news for the bank as it showed that there is investor confidence in the on-going Rights Issue and their strategy.  

“The 120 million rights traded translate to approximately Sh2 billion traded at Rights Issue price of Sh17,” said the Chief Executive Officer.

In the past 10 days, the Information Memorandum (IM) which carries important details about the offer has been sent out to shareholders and posted on the KCB website. The Provisional Allotment Letter (PAL) which bears details of shareholder entitlement has also been sent out to all shareholders for them to take up their rights.

“We are very optimistic that we shall achieve our goal of realising Sh15 billion in additional capital from this exercise,” said Mr Oduor-Otieno.

Over the past five days the bank has held investor forums in Kenya, Tanzania, Southern Sudan, Uganda and Rwanda to inform, educate and create awareness about the issue and encourage shareholders to take additional rights.

According to the timetable, the offer will close on July 23 to allow the process of allocation of rights to begin and reconciliation of data to be concluded ahead of the announcement of the results on August 5.
 

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