NAIROBI, Kenya
CfC Stanbic Holdings new shares began trading at the Nairobi Securities Exchange this morning following a successful Rights Issue, which saw the offer subscribed by 112 per cent. Speaking during the bell-ringing ceremony at the 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,” Mr. Ojiambo said, adding there was strong interest in the rights issue from both local and foreign investors.
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.
Mr. Greg Brackenridge, CfC Stanbic Bank’s Managing Director said: “Our strategy for the group is to change the funding mix to raise the proportion of funding that comes from customer deposits in order to lower the cost of funding. 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 Kshs33, 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. The new shares have been trading since 8th November.
NSE Chief Executive Peter Mwangi lauded the company for a successful Rights Issue saying the confidence shown by the shareholders was an indication of the strength of the company. “Successful transactions such as the CfC Stanbic Holdings Rights Issue are an affirmation that the capital markets continue to form a preferred avenue for listed and non-listed entities to raise funds, especially through the equity segment.” said Mr. Mwangi.
”This year has seen vibrant activity in Rights Issues which 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.”
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