Listed financial services provider Sanlam Kenya Plc has announced a KSh 2.5 billion Rights Issue to strengthen its balance sheet, following a year of robust financial recovery. The capital raise comes as the company reports a 922% surge in profit after tax to KSh 1.05 billion in 2024, reversing a KSh 125.9 million loss in 2023.
Key Details of the Rights Issue
| Feature | Detail |
|---|---|
| Offer Price | KES 5.00 per new share (at par value), 41.9% discount price, 4 April. |
| Total Shares Offered | 500,000,000 new ordinary shares |
| Entitlement Ratio | 125 new shares for every 36 existing shares held |
| Subscription Period | 25 April – 12 May 2025 |
| Underwriter | Fully backed by parent company Sanlam Allianz Africa |
| Lead Advisor | Absa Bank Kenya |
Record Date: 22 April 2025 (shareholders on record by this date are eligible).
Expected Listing of New Shares: 4 June 2025.
“In recent years, we have strategically worked to tighten and enhance our capital and investments management by retiring and restructuring our debt portfolio, divesting from real estate and winding up dormant subsidiaries. These efforts have enabled the Group to maintain a razor-sharp focus on its core insurance businesses, guaranteeing better returns to shareholders,”
Dr. Nyamemba Patrick Tumbo, CEO, said.
In 2024, Sanlam made a 922% turnaround in profit to, driven by an investment return surge of 397% to KSh 5.27 billion, and a 5.4% insurance revenue growth to Ksh 7.36 billion.
Sanlam Kenya’s 2024 Financial Performance
Key metrics underscoring the company’s recovery:
| Metric | 2024 (KSh ‘000) | 2023 (KSh ‘000) | Change (%) |
|---|---|---|---|
| Profit After Tax | 1,034,887 | (125,856) | 922% ↑ |
| Insurance Revenue | 7,359,029 | 6,985,282 | 5.4% ↑ |
| Investment Return | 5,272,785 | 1,061,225 | 397% ↑ |
| Total Assets | 39.2 billion | 35.4 billion | 10.7% ↑ |
| Total Equity | 1.9 billion | 866 million | 122% ↑ |
“The purpose of the Rights Issue is to bring the Group’s indebtedness to a more sustainable level and will specifically enable the Company to reduce its long-term debt levels, which will save on financing costs currently being charged by the Company’s lenders.”
– Dr. John Simba, Chairman
Why Investors Should Take Note
- Guaranteed Execution: Fully underwritten by Sanlam Allianz Africa, ensuring full capital raise.
- Attractive Pricing: Flat KES 5.00/share (no premium), offering a cost-effective entry point.
- Post-Debt Growth Potential: Reduced interest costs could amplify future profitability.
How to Participate:
- Eligible shareholders will receive PAL numbers via SMS/email from 25 April.
- Rights tradable on the NSE (25 April – 6 May) or via direct application.
- Payments accepted through Stanbic Bank Kenya (Receiving Bank).
