Capital FM (Nairobi)

16 November 2012

Kenya: CfC Stanbic New Shares Begin Trading

Nairobi — CfC Stanbic Holdings new shares have began trading at the Nairobi Securities Exchange (NSE) following a successful Rights Issue which saw the offer subscribed by 12 percent.

Speaking during the bell-ringing ceremony at NSE, CfC Stanbic Holdings Chairman Fred Ojiambo said the proceeds from the cash-call would go towards helping the financial services firm boost its business in both Kenya and South Sudan.

"We'd like to deeply thank all our shareholders for their enthusiastic interest in approving this exercise and for making the wise decision to invest in the new shares, whose trading at the Nairobi Securities Exchange we are commemorating today," Ojiambo said.

He said there was strong interest in the rights issue from both local and foreign investors noting that while a substantial number of shareholders participated in the rights issue, those who opted not to had been adequately compensated through the dividend that was declared in September this year and through the sale of their rights.

After the Rights Issue, the group's shareholding is now approximately 75 percent owned by foreign investors and 25 percent owned by local investors.

The bank's Managing Director Greg Brackenridge said; "We're delighted by this vote of confidence by our shareholders. The results of the Rights Issue are a reflection of the confidence the shareholders have in our strategy and future plans for which the capital raised will be vital in delivering."

The financial-services firm issued an additional 121.7 million shares to existing shareholders, at a price of Sh33, a 22.9 percent discount on the one-month weighted average price of the group's ordinary share in the trading period ending July 4.

NSE Chief Executive, Peter Mwangi said the vibrant activity in Rights Issues this year demonstrates the improving efficacy of NSE as a platform for listed companies through which they can manage their capital structure and fund growth.

"Through these Rights Issues the market has proven time and again that it is ready and willing to support business expansion and growth," he said.

Over five firms in the country have raised money through the rights issue this year alone with the approval of the Capital Markets Authority.

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