Capital FM (Nairobi)

Kenya: Standard Chartered's 22 Million New Shares List On NSE

Nairobi — Standard Chartered Bank has listed 22,082,856 new shares on the Nairobi Securities Exchange (NSE) from its recently concluded Rights Issue.

The bank exceeded its Sh3.2 billion target raising Sh8.3 billion and intends to use the proceeds from its second cash call for branch expansion, boosting its capital base and launching new products.

"This Rights Issue was oversubscribed by 158 percent. I think that says something about us. In the year leading up to elections people tend to draw back so we are humble by the fact that they came forward," said Anne Mutahi, the bank's interim chairperson.

Existing shareholders will get a new share for every 13 held at a discounted price of Sh145 per share, 63 percent less than Standard Chartered's current stock price of Sh236.

With the additional shares, the total number of issued shares of the bank at the bourse will hit 309,159,990.

In the 24 years Standard Chartered shares have been trading on the bourse, this is the second Rights Issue, with the first offered in 2010 which raised Sh2.5 billion.

The bank posted strong third quarter results with a 67 percent jump in net profit to Sh6.4 billion.

So far this year the amount of capital raised through new share issues by listed companies has reached Sh27.06 billion, with four out of the five cash calls offered by listed banks.

The corporate debt issues offered by Housing Finance and Consolidated Bank raised Sh4.95 billion.

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