NCBA Group PLC has listed an additional 793.8 million shares on the NSE, thereby sealing the NIC-CBA merger deal.
These additional shares belong to CBA shareholders who from now on will own shares in NCBA.
Analysts hold the view that the share price movement of the newly formed company will be dependent on how investors view the combined entity.
The previously listed entity, NIC Group’s issued and paid-up share capital stood at Sh 3.5 billion comprising 703.9 million ordinary shares of Sh 5 each. NCBA now has a total of 1.49 billion issued shares with a par value of Sh7.45 billion.
” I do not see significant movement in the share price given that both firms were more or less equal in size. I would pay more attention in the successful integration of the two entities,” said Gerald Muriuki, an analyst at Genghis Capital Limited.
The merged entity NCBA began operating earlier this month following approval from the Central Bank of Kenya and the National Treasury on September 27th, 2019.
Speaking during the bell ringing ceremony to kick of the trading of the new shares, NCBA Group Chairman James Ndegwa, noted that the listing of the new shares is part of the Banks’ journey towards building a strong institution in which Kenyans and other investors can be a part of.
“We are grateful to our investors who gave us the nod to get to where we are today, effectively creating the third-largest financial institution in the country. NCBA maybe three weeks old but together we bring over one hundred years of banking experience. We have been busy having unveiled the new inspiring NCBA logo, as part of our journey to bring our merger under one unified banner, we are currently rolling out our visual identity across all customer touchpoints in the region,” Ndegwa said.
When markets closed On Friday last week, NIC Group PLC shares were trading at Sh 31.95 compared to the previous price of Sh 29.15, a 9.61 percent increase in the share price.