Leading financial solutions provider in Kenya HF Group Plc has concluded its Rights Issue after achieving a subscription rate of 138.32%. The capital raise attracted applications worth KES 6.38 billion against the targeted KES 4.6 billion.
- Total subscription performance rate: 138.32%.
- Total number of shares accepted under entitlement: 474,201,310.
- Take-up percentage under entitlement: 61.65%.
- Total gross proceeds with full subscription and green shoe option uptake: KES 5,999,981,020
The Rights Issue, priced at KES 4.00 per share, aimed to raise KES 6 billion through the issuance of 1.5 billion new ordinary shares. Structured to offer two new shares for every one held, the offer included a greenshoe option of up to 384,614,168 shares to accommodate oversubscriptions. In total, shareholders applied for 1,595,995,966 shares.
Speaking on the success of the Rights Issue, HF Group CEO Robert Kibaara expressed gratitude to shareholders for their overwhelming support. “We went to our shareholders asking for additional investment of KES 4.6 billion. Upon conclusion of the process, we received applications amounting to KES 6.38 billion. We are now firmly on the path to powering our next phase of business growth.”
Purpose of the Capital Raise
The funds raised will be allocated as follows:
- Expanding Product Offerings: HF Group plans to grow its retail and corporate banking products to better serve its customers.
- Strengthening Technology Platforms: 15% of the funds will be directed toward digitization and enhancing technology infrastructure to improve operational efficiency and customer experience.
- Positioning for Growth: The capital injection will enable HF Group to scale its operations across key business segments, including mortgage lending, bancassurance, and property development, while ensuring compliance with new capital regulations requiring banks to have a minimum capital base of KES 10 billion by 2028.
“This is a great show of confidence by our shareholders. Our key shareholders, including Britam and NSSF, as well as retail investors, demonstrated immense confidence in the Group by taking up their rights. We now have a solid foundation to unlock value for shareholders.” said HF Group Chairperson Prof. Olive Mugenda.
Next Steps
The shares will be credited to shareholders’ CDS accounts by 23rd December 2024, with trading set to commence on the Nairobi Securities Exchange on 24th December 2024.
About HF Group Plc
HF Group Plc, established in 1965, has evolved from a mortgage financier into a diversified provider of financial solutions. Listed on the Nairobi Securities Exchange since 1992, HF Group operates as a non-operating holding company with subsidiaries including HFC, HFDI, HF Bancassurance Intermediary, and HF Foundation. The Group’s strategic focus encompasses personal, business, institutional, and diaspora banking, as well as property and insurance solutions.
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