Listed local financial solutions provider HF Group Plc (NSE: HFCK) has received regulatory approval from the Capital Markets Authority (CMA) to raise up to Ksh6 billion through a Rights Issue transaction.
Robert Kibaara, the Group’s CEO stated; “This capital investment marks a pivotal milestone in HF Group’s ongoing transformation journey and reinforces our dedication to delivering long- term value to our stakeholders.”
This significant capital raise is a cornerstone of HF Group’s five-year strategy, aimed at evolving into a full-service banking institution and a fully diversified financial entity. By empowering future growth, this capital will enable the Group to expand product offering, strengthen technology platforms and position itself for future growth. HF Group is on its third straight year of profitability.
The approved Rights Issue will offer up to 1,499,995,255 new ordinary shares at a price of Ksh4.00 per share. The Rights Issue is structured to offer shareholders two new ordinary shares for every oneexisting ordinary share held, with the shareholders having the option to apply for additional shares. In addition, a green shoe option of up to 30% (equivalent to 384,614,168 shares) has been approved to accommodate any potential oversubscription. The new ordinary shares will be listed on the Nairobi Securities Exchange (NSE).
On her part, HF Group Chairperson Prof. Olive Mugenda said, “HF Group invites shareholders to participate in this Rights Issue, as it presents them with an opportunity to exercise their rights and contribute to the Group’s promising future. As the Group embarks on this transformative journey, we remain committed to innovation, excellence and delivering exceptional value to all our stakeholders.”
“Over the past two and a half years, we have demonstrated the strength and resilience of our business by registering year on year growth in profitability. I am confident that with the capital injection, we will be well positioned to accelerate further growth into the future” Robert Kibaara said.
Britam Group, HF Group’s major shareholder, has confirmed that it will be taking up its full Rights. Other principal shareholders are also supportive of the Transaction.
Shareholders must be on the register by 3pm on Friday, November 1st 2024, the Record Date, in order to participate in the Rights Issue. The Offer will open on Tuesday, November 12th, 2024, and close on Monday, December 9th, 2024 at 5pm.
On Monday, August 12th, 2024, the Board of Directors of HF Group passed the resolution to offer up to 1,499,995,255 new ordinary shares (inclusive of a 30% green shoe option) via a Rights Issue. The shareholders subsequently approved this during the General Meeting held on Wednesday, September 4th, 2024.
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