Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

Kenyan bank rights issue on a roll

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.
 

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...