BY MANUEL ODENY
The HF Group Plc recent rights issue to boost their business received a boost as over 38.32% investors subscriped.
The Nairobi Stock Exchange listed company said in a press statement they have achieved an over subscription on its recently concluded Rights Issue, with a total subscription performance rate of 138.32%
“The outcome of the Rights Issue has been an overwhelming success. We went to our shareholders asking for additional investment of Kes 4.6Billion, upon conclusion of the process, we have received applications of Kes 6.38Billion. We are now firmly on the path to powering our next phase of business growth.” Robert Kibaara, the Group’s CEO said.
The capital raised will cover the company’s five years plan “aimed at evolving into a full-service banking institution and a fully diversified financial entity.”
“These funds will go towards expanding the growth of our business. 85% will go towards this while 15% will go towards technology and digitization of the business to increase efficiency and customer experience.” Robert Kibaara said.
The company will use the investment to expand its product offering and strengthen its technology platforms.
The news by HF Group will be a major boost to investors in the stock exchange after it has been in a third straight year for profitability.
It also plans to have its shares priced at Ksh4.00 each to give shareholders two new ordinary shares for every one existing ordinary share held, with the shareholders having the option to apply for additional shares.
“In addition, it had a green shoe option of up to 30% (equivalent to 384,614,168 shares) to accommodate any potential oversubscription,” the group said.
The Grand Total Number of New Shares applied for under the Rights Issue (Entitlement Shares + Additional Shares) was 1,595,995,966 with a total gross value of Kes 6,383,983,864.
HF Group Chairperson Prof. Olive Mugenda said the oversubscription shows confidence on the company.
“Our key shareholders Britam and NSSF as well as our retail shareholders demonstrated immense confidence in the Group by taking up their rights. We have now set up a foundation for growth and we look forward to unlocking value for our shareholders in the short term.” she said.
With this successful capital injection, the Group is on course to fully comply with the new capital regulations that will see banks expected to grow their capital base to 10 Billion by 2028.
About HF Group Plc started operations on November 18th 1965, and has diversified from being a mortgage financier to a provider of integrated financial solutions with interests in Personal Banking, Business Banking, Institutional Banking, Trade Finance, Diaspora Banking, Treasury as a business, Property and Insurance.
HF Group is listed at the Nairobi Securities Exchange since 1992.
