NAIROBI, Kenya Dec 7 – Clothing and lifestyle retailer Deacons Kenya Limited has raised Sh700.9 million from its Public Offer to fund store expansion in the region as well as diversify its brands.
Deacons had offered 12.8 million shares valued at Sh62.50 per share.
"Having exceeded the minimum target of Sh500 million, this marks a success rate of 87.62 percent of the total shares on offer," the Deacons board said in a statement.
The figure was however short of its Sh800 million target it had set when kicking off the offer on November 17.
"We have ambitious plans for growth at Deacons. We expect to significantly increase the number of stores across the region in the next five years and at the same time will continue to pursue new opportunities to expand and diversify our portfolio of brands to ensure our customers are kept happy, satisfied and engaged," Deacons Chief Executive Muchiri Wahome said during the launch of the offer.
During the offer, qualified institutional investors generated Sh272.6 million, individual and corporate investors Sh261.4 million, existing shareholders Sh126.8 million while staff members raised Sh40 million.
Deacons currently has 23 retail outlets in Kenya, Uganda and Tanzania which it plans to double to 54.
Having started in 1958, Deacons has evolved into a well known retailer with such brands as Woolworths, Truworths, Identity, and 4U2, Mr Price, Mr Price Home, Angelo, Adidas and Life Fitness in its stable.
The company is the first lifestyle brands retailer in Kenya to raise capital in this form from the public.
Turnover at the company has been on upward trajectory in the last five years posting Sh442.3 million in 2005 (five stores) and a projected Sh1.9 billion in 2010 (25 stores). Net income has also been soaring with 43.95 million in 2005 and Sh79.60 million in 2009.