Nation Correspondent
27 October 2008
Nairobi — The Co-operative Bank has launched an investor briefing through road shows in major towns to market the upcoming initial public offering.
In the offer opening on Thursday, the bank hopes to raise Sh6.7 billion to fund its expansion, add ATM machines and launch mortgage products.
The bank will offer 701 million ordinary shares at Sh9.50 a piece. "My personal projection is that I expect this share to start trading at Sh15 above," said Mr Sam Birechi, one of the banks directors.
According to transactional advisers of the offer, the price was reduced by 20 per cent to match the price-to-earnings ratio of 11.5 per cent.
The bank plans to use proceeds from the IPO to establish branches in the region.
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