NAIROBI, Kenya, Oct – The Capital Markets Authority (CMA) has granted regulatory approval to HF Group Plc to raise up to Sh6 billion through a Rights Issue.
In a statement, the group announced that the approved rights will offer up to 1.5 billion new ordinary shares, which will be listed on the Nairobi Securities Exchange (NSE) at a price of Sh4.00 per share.
Shareholders have been urged to register by 3 pm on Friday, November 1, 2024, the Record Date, to participate in the Rights Issue.
“The Rights Issue is structured to offer shareholders two (2) new ordinary shares for every one (1) existing ordinary share held, with the option for shareholders to apply for additional shares,” the statement noted.
Additionally, a green shoe option of up to 30 percent (equivalent to 384.6 million shares) has been approved to accommodate any potential oversubscription.
In its third year of profitability, HF Group says this approval will pave the way for substantial capital generation, a key component in the group’s transformation into a full-service banking institution and a fully diversified financial entity.
According to HF Group CEO Robert Kibaara, the approval is crucial for enabling HF to deliver long-term value to its stakeholders.
“This capital investment marks a pivotal milestone in HF Group’s transformation journey and reinforces our commitment to delivering long-term value to our stakeholders,” he stated.
HF Group Chairperson Olive Mugenda encouraged shareholders to participate in the Rights Issue, as it offers them an opportunity to exercise their rights and contribute to the Group’s future.
“As the Group embarks on this transformative journey, we remain dedicated to innovation, excellence, and delivering exceptional value to all our stakeholders,” she added.
