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Kenya

DTB kicks off trade in 24m new shares at NSE

NAIROBI, Kenya, Sep 27- Diamond Trust Bank has kicked off trading for its 24.45 million new shares from its just-concluded Rights Issue.

The issue saw an 86 percent oversubscription up to Sh3.37 billion compared to the target of sh1.81 billion.

Speaking during the commencement, DTB chairman Abdul Samji emphasised that the funds will be used for expansion plans especially up-scaling operations in the East African region.

“The additional capital raised in the just concluded Rights Issue will play a fundamental role in DTB’s vision of propelling the growth both in Kenya and in the region. We will also be able to explore new markets,” said Samji.

This is the DTB’s third Rights Issue after two successful ones in 2006 and 2007 which were also oversubscribed by 98 percent and 76 percent respectively.

Investment director at Standard Investment Bank Amish Gupta noted that the country’s current macro-economic environment characterised by a stable shilling exchange rate, falling inflation and declining interest rates is working in favour of rights issues by various financial institutions.

“We call upon the public to use this transaction that shows that the capital markets have changed for the better and this is very important for the continued development of our securities exchange, “said Gupta.

DTB has in the last few years increased its investments in the group’s subsidiaries in Tanzania, Uganda, and Burundi as well as expanded its branch footprint in Kenya.

The bank, whose pre-tax profit for last year rose 24 percent to Sh4.3 billion up from the previous year’s Sh3.5 billion, is betting on regional expansion initiatives to consolidate its market share in the small and retail banking.

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