Money Markets
NIC Bank Group managing director John Gachora. FILE PHOTO |
NATION MEDIA GROUP
By JOHN GACHIRI
In Summary
- Analysts said the discount shows the bank is not taking any chances at raising the Sh2.1 billion it targets.
- NIC had earlier indicated anchor shareholders that include the wealthy Ndegwa family had agreed to take up rights further increasing the chances of a successful rights issue.
- The offer will open on October 23 and close on November 14. It is open to shareholders who will be in the register by October 2.
NIC Bank is dangling a 38 per cent discount for...............................
investors in a cash call set to open in a month’s time.
investors in a cash call set to open in a month’s time.
The listed bank said it would sell some 42.7 million stocks at Sh49.25 per share to stakeholders to raise Sh2.1 billion.
The price for the bank’s stock was Sh79 in Thursday’s trading. The discounted price is slightly more generous than Diamond Trust Bank’s June offer that was priced at Sh165, a 32 per cent discount on the last market price of Sh244.
Shareholders will also receive a bigger discount
than NIC’s last rights issue of July 2012 that was priced at Sh21. The
price represented a 22.24 per cent reduction on the 36-month weighted
average price of Sh27.
Analysts said the discount shows the bank is not taking any chances at raising the Sh2.1 billion it targets.
“The discount is to make it more attractive and
ensure that the rights is fully taken up,” said Agnes Achieng, research
analyst at Sterling Capital.
DTB managed to increase the chances of success
after the discount, raising the Sh3.63 billion that it was targeting in
August in a heavily subscribed offer.
NIC had earlier indicated anchor shareholders that
include the wealthy Ndegwa family had agreed to take up rights further
increasing the chances of a successful rights issue.
The listed bank is raising the funds to enable it
meet the Central Bank of Kenya capital requirements in addition to
expanding its loan book. It will also be looking to finance large
projects in the region.
Fresh capital
“The approval by the Capital Markets Authority
allows us to enter the next phase of our capital raising initiative
after listing a successful bond a week ago,” said NIC Bank chief
executive John Gachora.
“If successful, it will help us focus on continued
growth in the coming years with more focus on deal-making opportunities
in Kenya and the region.”
The offer will open on October 23 and close on November 14. It is open to shareholders who will be in the register by October 2.
The bank listed a Sh5.5 billion bond on the Nairobi
Securities Exchange last week and is set to receive a Sh4.8 billion
loan from the International Finance Corporation (IFC).
No comments :
Post a Comment