I&M shares hit Sh103 on NSE debut

I&M Bank building along Kenyatta Avenue, Nairobi. I&M Holdings commenced trading on Tuesday at Sh93 per share, marking the conclusion of a reverse take-over of investment firm City Trust by the banking entity. FILE  Nation Media Group

By MOSES AKENA
 

 

I&M Holdings commenced trading on Tuesday at Sh93 per share, marking the conclusion of a reverse take-over of investment firm City Trust by the banking entity.

(Read: Investors shift focus to I&M’s debut share price at NSE)

The stock jumped to Sh103 per share shortly after debut at the Nairobi Securities Exchange (NSE), within pre-listing valuations by transaction advisors Dyer and Blair and Standard Investment Bank.

I&M Holdings, which comprises separate business entities City Trust and I&M Bank, listed a total of 392.36million shares following a re-organisation of the company’s capital structure.

Speaking at the Stanley Hotel in a ceremony to mark the listing, executive director Sarit Raja-Shah said the bank now has access to a larger pool of funds to expand its reach, including a planned entry into the Ugandan market.

“We are excited about this transaction which has enabled the shareholders of the bank to list on the NSE thus providing liquidity for our institutional, corporate and individual shareholders. The listing also provides us with the platform to raise additional capital in the future to facilitate the achievement of our long term growth and expansion strategy and to improve on our capacities to successfully manage the growth we have achieved in the past few years,” said Mr Raja-shah.

I&M Bank currently has operations in Kenya, Tanzania, Mauritius, and Rwanda.

During the same event, the deputy governor of Central Bank of Kenya Haron Sirima called on banks to narrow the gap between lending and deposit rates.

Dr Sirima noted that I&M is the first bank to take advantage of the new guidelines that allow ownership by non-operating holding companies.