NAIROBI, Kenya, Nov 2 – The recently concluded CfC Stanbic Holdings Limited Rights Issue has been oversubscribed by 12 percent after shareholders offered approximately Sh4.5 billion against the targeted Sh4 billion.
CfC Stanbic Holdings Managing Director Kitili Mbathi stated, “We’re delighted by this vote of confidence by our Shareholders. The results of the Rights Issue are a reflection of the confidence the shareholders have in our strategy and future plans for which the capital raised will be vital in delivering.”
He added that interest in the Rights Issue was strong from both local and foreign investors.
The Rights Issue is the largest to date this year by a Kenyan financial institution and trading in the shares at the Nairobi Securities Exchange (NSE) was very active with over 41 million traded during the offer period.
Mbathi explained that all shareholders who took up their issue in full will receive the full shares as indicated in their Provisional Allotment Letter.
“The untaken rights have been allocated to eligible shareholders that applied for additional new shares in accordance with the rules stipulated in the investors’ memorandum,” he added.
The new shares issued following the conclusion of the Rights Issue will start trading at the NSE on November 8, with refund cheques going out to shareholders from November 6.
Following the close of the Rights Issue, the group’s shareholding is expected to be approximately 75 percent owned by foreign investors and 25 percent owned by local investors.
In total, CfC Stanbic Holdings issued an additional 121.7 million shares to existing shareholders, at a price of Sh33, a 22.9 percent discount on the one-month weighted average price of the group’s ordinary share in the trading period ending July 4.
The cash-call was aimed at helping the financial services firm support the growth of its operations in Kenya and South Sudan.
The Rights were issued to eligible shareholders in the ratio of four (4) new shares for every nine (9) shares held at the closure of the CfC Stanbic Holdings Share Register on August 30.
Eligible shareholders wishing to sell their rights had until October 8 to do so with the offer closing on October 16.
CfC Stanbic Holdings announced a 34 percent increase in after-tax profits for the first half of 2012.
The financial services company, a member of the Standard Bank Group recorded Sh1.2 billion in after-tax profits for the period ending June 30, compared to Sh902 million during the same period last year.
The group’s local subsidiary CfC Stanbic Bank recorded a 53 percent rise in profits after tax which stood at Sh1.3 billion in the first half of 2012 compared to Sh841 million recorded during the same period last year.
The bank’s total operating income increased 40 percent to Sh6.5 billion compared to the similar period last year.