Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Currently, SMEP DTM is fully owned by the NCCK. FILE Photo.

Kenya

SMEP microfinance launches Sh1.6b share offer

Currently, SMEP DTM is fully owned by the NCCK. FILE Photo.

NAIROBI, Kenya  Oct 12 – SMEP Deposit Taking Microfinance Limited on Friday launched a share offer seeking to raise Sh1.6 billion to fund its expansion.

In the sale, which was approved by the Capital Markets Authority Thursday, the company will offer 145, 454, 546 new ordinary shares of par value Sh5.00 each at a price of Sh11.00 per new share for a total of Sh1.6 billion.

Eligible investors in the offer which closes on November 30, will include SMEP DTM customers, employees of SMEP DTM and National Council of Churches of Kenya (NCCK) and its members.

“The shares if fully subscribed shall comprise 68.143 percent shareholding of SMEP DTM,” SMEP DTM Chairman Gabriel Kivuti said.

Currently, SMEP DTM is fully owned by the NCCK.

The sale will reduce the ownership of NCCK, as the umbrella union of churches seeks to comply with the regulations.

“The minimum application size of shares shall be 100 shares (Sh1,100) for all categories. Employees of SMEP DTM and NCCK can apply for a maximum of 2,000,000 shares while NCCK member churches or their organizations are eligible for a maximum of 59,000,000 shares,” Kivuti added.

Kivuti said SMEP DTM will use the funds to improve its current financial mix boosting its lending capacity –to break away from reliance on debt- and introducing new and more attractive products.

Chief Executive Officer Phyllis Mbungu said part of the funds will also go to finance the construction of a new ultra-modern office building on its property located at the prime Kilimani area in Nairobi.

“We have constantly invested in ICT being the first local microfinance institution to roll out Visa-enabled ATM debit cards earlier this year. We are also leaders in mobile banking services in the local microfinance sector and part of the funds will be used to boost our investment in more ICT solutions,” Mbungu added.

Advertisement. Scroll to continue reading.

The company is also in the process of upgrading a number of its existing outlets across Kenya into full deposit-taking branches as well as launching agency services.

The share sale will raise the required equity capital to achieve those initiatives which are part of the company’s strategic plan for the period between 2012 and 2016.

“NCCK believes that the Church ought to position itself to play a more active role in the economic development of Kenya. To achieve this goal, the huge potential of the Church must be consolidated,” NCCK General Secretary Canon Peter Karanja said.

SMEP DTM has appointed Standard Investment Bank Ltd as Lead Transaction Advisor, Joint Financial Advisor and Authorised Agent for the Offer.

SMEP DTM is a Sub-Agent and Kingdom Securities Ltd (represented through the branches of The Co-operative Bank of Kenya Ltd) is the Authorised Agent.

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...

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

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

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

Coronavirus

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

Headlines

NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...