HF Group PLC, a financial solutions provider, has achieved an oversubscription on its just concluded Rights Issue earning aggressive subscription performance hitting higher at a rate of 138.32%.
Expressing his overwhelming joy for having earned this success, Robert Kibaara, the Group’s CEO stated that the company’s focus is now pinned on powering its next phase of business growth.
“We went to our shareholders asking for additional investment of Ksh.4.6 billion, upon conclusion of the process, we have received applications of Ksh.6.38 billion. We are now firmly on the path to powering our next phase of business growth,” he said, adding that the capital they have received will enable the Group to expand its product offering and also to strengthen its technology platforms and position itself for future growth.
READ ALSO: Kalonzo Invites Gachagua to Opposition Amid 2027 Election Speculations
HF Group Chairperson Prof. Olive Mugenda on her part, credited the Group’s shareholders, saying: “This is a great show of confidence by our shareholders. Our key shareholders Britam and NSSF as well as our retail shareholders demonstrated immense confidence in the Group by taking up their rights.” She said.
She added, “We have now set up a foundation for growth and we look forward to unlocking value for our shareholders in the short term.”
The Rights Issue priced at Ksh.4.00 per share, was structured to offer shareholders two (2) new ordinary shares for every one (1) existing ordinary share held, with the shareholders having the option to apply for additional shares.
In addition, it had a green shoe option of up to 30% to accommodate any potential oversubscription. The Grand Total Number of New Shares applied for under the Rights Issue (Entitlement Shares + Additional Shares) was 1,595,995,966 with a total gross value of Ksh.6,383,983,864.
According to Robert Kibaara, these funds will go towards expanding the growth of the Group’s business with 85% of it directed towards it, while 15% getting channeled towards technology and digitization of the business to increase efficiency and customer experience.
With this successful capital injection, the Group is on course to fully comply with the new capital regulations that will see banks expected to grow their capital base to Ksh.10 Billion by 2028.
The shares will be uploaded to shareholders’ CDS accounts on Monday 23rd December with trading set to commence on the Nairobi Securities Exchange on Tuesday December 24th 2024.