Corporate News
Customers queue for service at a Family Bank branch in Nairobi. The bank
is set to double its issued shares after effecting a one-for-one split.
PHOTO | FILE |
NATION MEDIA GROUP
By MUGAMBI MUTEGI
In Summary
Family Bank is set to double its issued shares after
effecting a one-for-one split that is expected to increase the liquidity
of its stock by lowering their unit costs.
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The bank, which had 557 million issued shares as at the end
of last year, is set to seek shareholder approval for the proposed split
at an extraordinary general meeting to be held next month.
Shareholders, whose funds in the bank grew 23 per
cent to Sh6 billion in the year to December will, during the EGM, also
be expected to give their greenlight for a rights issue whose targeted
value is however yet to be made public.
“On the recommendation of the Board of Directors,
and subject to shareholder and regulatory approvals, the issued shares
of the company be split in the ratio of 1 for 1,” a press notice by the
bank reads in part.
“...the holding of those persons or entities shown
in the register as members of the company as at the close of business on
26th September 2014 shall be adjusted proportionately to reflect the
split…”
Bonus issue
This share split follows a bonus issue that the
bank effected last year and which increased its fully paid up
shares from 278 million to the current Sh578 million, against a total of
750 million authorised ordinary shares.
Four years ago, the bank split its shares by two-and-a-half times, in a move that preceded its maiden rights issue.
The latest split will see the par value of each share halve from Sh2 to Sh1 for every ordinary share.
Family Bank, which started in 1984 as a building
society before converting into a fully fledged commercial bank in May
2007, has been eyeing listing on the Nairobi Securities Exchange (NSE)
through an initial public offering.
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