NAIROBI, Kenya Sep 27 – TPS Eastern Africa on Monday commenced trading its new shares at the Nairobi Stock Exchange (NSE) following a successful Rights Issue.
TPS had offered its shareholders one new share for every five held at a discounted price of Sh48. The issue seeking to raise Sh1.1 billion was 35 percent oversubscribed raising Sh1.8 billion, subsequently creating 24.7 million new shares.
Speaking during the bell ringing ceremony at the NSE trading floor, TPS Eastern Africa Chairman Francis Okello said the capital markets created an ideal platform from which to source capital and the company was impressed with the response of the shareholders.
“We owe it to our shareholders who demonstrated considerable confidence in our company by taking up their rights. The oversubscription was a clear message of assurance to the board that the shareholders fully back our growth strategy and plan,” Mr Okello said.
TPS Eastern Africa runs the Serena group of hotels, resorts and lodges across the region.
The money raised through the Rights Issue is to be used to finance its expansion and acquisition of key properties. Part of the proceeds will be used to capitalise Jaja Limited, a holding company through which TPS is undertaking development of three properties in Nanyuki, Nakuru and Elementaita.
The company plans to acquire 51 percent of Upekee Lodges that owns two properties in southern Tanzania. The lodges will be operated by TPS Tanzania, which is a wholly owned subsidiary of TPS Eastern Africa.
TPS Eastern Africa is also eyeing buying assets of Mbuvi Mawe tented camp and Mountain Village in Arusha Tanzania.
Mr Okello said the extra capital would allow it to have additional equity participation in TPS Rwanda limited by increasing the level of its equity investment from the current eight percent to 17 percent.