The Capital Markets Authority (CMA) has granted approval to The Standard Group PLC for its proposed rights issue. As part of this offering, Standard Group will issue a total of 283,661,120 new shares at Ksh5.29 per share, aiming to raise approximately Ksh1.5 billion.
The issuance is structured at a ratio of 11 new ordinary shares for every 3 ordinary shares held. The rights issue follows approval by shareholders at the Annual General held on 2nd September 2024.
A rights issue is an offer to existing shareholders to buy additional shares and offers companies a chance to raise additional capital to finance their strategies without going for expensive options such as debt. The shares offered are at a discount to the prevailing market price.
Standard Group, currently facing financial constraints, intends to utilise the Ksh1.5 billion strategically to settle existing liabilities, secure working capital, and support both organic and inorganic growth. The funds will also drive its digital transformation efforts and strengthen its financial position.
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The Standard Group PLC Board Chairman, Dr. Julius Kipngetich, said the CMA approval marks a significant milestone in the Standard Group’s transformation journey. “Over time, we have made substantial progress in streamlining operations, reducing costs, and implementing a robust strategic plan aimed at long-term financial resilience,” he said.
Dr Kipngetich said approval of this rights issue sets the stage for the vital capital injection needed to accelerate the company’s digital-first strategy and push toward positive financial results within the next 12 months. “We are grateful for the continued trust and support of our shareholders and stakeholders, and with this approval, we remain confident that the Standard Group is positioned to become a leading force in the ever-evolving media landscape,” he said.
As part of its recovery strategy the company has installed a new leadership team at the management and board levels, including the appointment of Group Chief Executive Officer Marion Gathoga-Mwangi in August and Chaacha Mwita as Chief Executive Editor in April.
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