Nation Reporter
17 October 2008
Nairobi — The Co-operative Bank of Kenya's initial public offering will go on as planned, despite the current slowdown in the stock market, which has seen it shed over a quarter of its wealth.
On Friday, the bank received approval from the Capital Markets Authority to carry out its planned initial public offering, clearing the way for the sale to commence.
The bank will list the entire 3.6 billion issued shares and sell 701 million shares as it seeks to raise Sh6.5 billion from the public.
Each share will retail at Sh9.50, with each investor required to put in at least Sh9,500 to purchase the 1000 minimum number of shares required.
"Following the approval, the IPO will open on October 30, 2008 and close on November 13, 2008," a statement signed by Coop Bank chief executive, Mr Gideon Muriuki read.
The fund generated will fund the bank's expansion programme and infrastructure upgrade, as it prepares to drive up its market share in the banking industry.
The bank will also seek to make its entry in mortgage financing, in keeping with its growth plan.
"It is important to note that unlike in many previous IPOs, the proceeds of this sale will not be going to pay off an existing shareholder, but will be ploughed into the bank to grow its business," the statement further read.
Retail investors will be allocated 66 per cent of the shares while institutional investors will take 30 per cent.
The bank noted that the distribution criterion aims at ensuring that retail investors are afforded an opportunity to be the major beneficiaries of the offer.
The shares will be available in all Coop Bank branches, as well as approved stockbrokers and their agents, and selected sacco offices.
The bank promises that infrastructure and key arrangements made for the sale will ensure that the IPO will be conducted with utmost efficiency, as will refunds.
Co-op Bank reported a Sh1.7 billion pre-tax profit for the six month to June 30, 2008.
"We invite all Kenyans to plan and invest in the Co-op Bank shares and share in the continuing good fortunes of the bank," Mr Muriuki said.
Be the first to Write a Comment!
Copyright © 2008 The Nation. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
