Nairobi, Kenya — NIC Bank's new shares began trading at the Nairobi Securities Exchange (NSE) last week with the announcement of a plan to increase its footprint in the East African region.
The trading follows a successful Rights Issue which saw the offer oversubscribed by 238%. The offer received applications of over $82.3 million from a target of $23.5 million.
Speaking during the ceremony to mark the commencement of trading of the new shares at the NSE, NIC Bank Chairman Mr. James Ndegwa said the proceeds from the Rights Issue would be used to fund the bank's regional expansion plan and upgrade its core banking system.
"Our strategic intent is to spread our business outlets to the rest of East Africa," said Ndegwa. He also noted that the bank was keen on tapping into the numerous opportunities arising from the regional convergence of markets and economies under different trade agreements such as the East African Community.
In support of NIC's effort, the NSE Chairman, Mr. Eddy Njoroge emphasized the need for financial institutions to seize the various opportunities available for raising additional capital through the capital markets. He observed that this was NIC's second successful Rights Issue after a previous one conducted in 2007 raised a total amount of $12 million. He went further to laud the banks' continued accomplishments.
Finance Minister Njeru Githae who was the guest of honour at the ceremony noted that the result of NIC Bank's Right Issue had indicated that investors had strong faith in Kenya's economy, notwithstanding the forthcoming general elections in 2013.
"A 238% oversubscription level is a seal of approval by investors, both local and international, of Kenya's economy as well as our capital market given that this has been achieved just a few months before the 2013 General Elections," the Minister said.
Last Updated ( Monday, 29 October 2012 09:44 )