DTB Rights Issue oversubscribed by 340pc

August 13, 2014
Shares

,

The Rights Issue received total subscription of 96 million shares worth Sh16 billion against a target of 22 million shares/FILE
The Rights Issue received total subscription of 96 million shares worth Sh16 billion against a target of 22 million shares/FILE
NAIROBI, Kenya, Aug 13 – Diamond Trust Bank’s (DTB) Rights Issue that kicked off on June 30 from targeting to raise Sh3.63 billion has been oversubscribed by 340 percent.

The Rights Issue received total subscription of 96 million shares worth Sh16 billion against a target of 22 million shares.

Speaking to Capital FM Business, DTB Group Chief Financial Officer Alkarin Jiwa says the oversubscription shows confidence of their shareholders in the group.

“Seventy eight percent of the shareholders participated in the offer with a total subscription of 440 percent, we are very excited about our expansion plans which the money raised will be used for,” Jiwa said.

The bank was offloading an additional 22 million shares to existing shareholders priced at Sh165 each at the closure of the register on July 25, 2014.

The additional capital raised from the Rights Issue will be used to fund future asset growth and invest in the branch network and alternative channels in Kenya.

The bank plans to expand its footprint to new frontier markets in Eastern and Southern Africa in the next seven years subject to successful completion of feasibility studies as well as shareholder and regulatory approvals.

The bank’s total numbers of branches stand at 103 across East Africa with plans to open 10 branches by the end of the year.

Between 2006 and 2012, DTB Kenya undertook three sets of Rights Issues – all of which were oversubscribed – raising additional capital of Sh4.1 billion in aggregate from the market.

DTB is an affiliate of the Aga Khan Fund for Economic Development (AKFED), the economic development arm of the Aga Khan Development Network.

Amongst the bank’s key shareholders are Habib Bank Limited and Jubilee Holdings Limited, both affiliates of AKFED, as well as the International Finance Corporation, the private lending arm of the World Bank.

Shares

Latest Articles

Stock Market

Most Viewed