The Capital Markets Authority (CMA) has granted regulatory approval to HF Group Plc to raise Kes 6 billion through a Rights Issue.
In a statement, HF Group announced that the approved rights will offer up to 1.5 billion new ordinary shares, listed on the Nairobi Securities Exchange (NSE) at Kes 4.00 per share.
The Group has urged shareholders to register for the Rights Issue by 3 p.m. on Friday, November 1, 2024, the Record Date.
“The Rights Issue is structured to offer shareholders two (2) new ordinary shares for every one (1) existing ordinary share held, with the option for shareholders to apply for additional shares.”
Additionally, a green shoe option of up to 30 percent (equivalent to 384.6 million shares) has been approved to accommodate any potential oversubscription.
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In its third year of profitability, HF Group says this approval will pave the way for substantial capital generation, a key component in transforming into a full-service banking institution and a fully diversified financial entity.
HF Group Chief Executive Officer (CEO)Robert Kibaara said the approval is crucial for enabling HF to deliver long-term value to its stakeholders.
“This capital investment marks a pivotal milestone in HF Group’s transformation journey and reinforces our commitment to delivering long-term value to our stakeholders,” he stated.
On her part, HF Group Chairperson Olive Mugenda encouraged shareholders to participate in the Rights Issue, offering them an opportunity to exercise their rights and contribute to the Group’s future.
“As the Group embarks on this transformative journey, we remain dedicated to innovation, excellence, and delivering exceptional value to all our stakeholders,” she added.
