The group raised Sh3.63 billion in additional capital by offering 22 million rights to its shareholders at Sh165 which was oversubscribed by 340 percent.
DTB Group Chairman Abdul Samji said the funds raised will further strengthen their ability to achieve long-term strategic objectives anchored on deepening their presence in Eastern Africa and expanding to new markets in Sub Saharan Africa.
In line with the Information Memorandum supporting the Rights Issue, the funds raised will be used mainly to continue with DTB’s expansion plans and explore additional opportunities to further strengthen its presence in Kenya and the sub-region, through its affiliates in Uganda, Tanzania and Burundi, as well as explore new investment opportunities in surrounding markets.
“The Rights Issue subscription of 440 percent was record breaking for DTB which has undertaken three Rights Issues previously and also for the NSE, as no previous Rights Issues undertaken at the bourse over the past 10 years had achieved such a high level of subscription,” Samji said.
He also said that refunds to shareholders who had applied for additional shares had been made to the shareholders last Friday August 22, ahead of the scheduled date of Monday August 25.
On his part NSE Chairman Eddy Njoroge, said that increased attempt by quoted companies to raise fresh funds through the bourse is an attestation that the primary segment of the Kenyan capital market has picked up.
“This is DTB’s fourth successful Rights Issue after three others in 2006 (Sh776 million), 2007 (Sh1.6billion) and 2012 (Sh1.8billion). DTB has used the funds to invest in its businesses across Burundi, Kenya, Uganda and the United Republic of Tanzania.”
“This has enabled DTB to use the capital markets to expand its footprint and brand across the region. The latest capital raise will be used to bolster its core capital,” stated Njoroge.
He added that the success of the DTB Rights Issue, signals the great demand from domestic and international investors for investment opportunities in the capital markets.
“We strongly urge our private sector and the Government of Kenya to take advantage of the current interest from investors to tap the capital markets to finance their projects” added Njoroge.
Last week DTB’s shares were trading at an all time high of Sh260 per share, resulting in a capital appreciation of nearly 60 percent over the price at which the rights were issued.
With the listing on Tuesday, the market capitalisation of DTB Group stands at Sh63 billion, rising by 65 percent in the past one year.