HF Group has successfully raised KSh 6.4 Billion in its just concluded over-subscribed rights issue
Important Stakes about the Rights Issue
Oversubscription:
The Rights Issue was subscribed 138.32 times and thus investor response remained quite positive.
The offer which was at KSh 4.00 per share enabled the shareholders to acquire additional two shares for every share they held.
Funds Raised:
As many as 1.59 billion shares were applied for, which at their average offer price of KSh 4.02 generated a gross amount of KSh 6.38 billion, thereby raising more than the targeted KSh 4.6 billion.
The high demand was absorbed through green shoe up to 30% or 384.614 million shares.
Fund Allocation:
The remaining 85% of the funds will go to business growth investment, where improvement of products and customers’ base will be prioritised.
15% shall be spent on technology and digitisation as this will cause the firm to optimise on its operations and enhance its service delivery to the consumers.
Leadership Comments
Robert Kibaara, CEO, HF Group
They thanked shareholders for their overwhelming support they received.
Highlighted the importance of the capital raised in fueling HF Group’s next growth phase:
“And with that the company is set up nicely on a trajectory to power its next wave of business development.”
Olive Mugenda, Chairperson, HF Group.
Noted the confidence demonstrated by shareholders, including key stakeholders such as Britam and NSSF:
“This is a big boost to our company’s investment้เกิด by our shareholders. We have now lay down the foundation for growth and we are now eager to start unlocking shareholder value in the short run.”
Strategic Impact
Regulatory Compliance:
The capital injection thus prepares HF Group for future compliance with other regulations such as the 500 billion basic capital level of banks by 2028.
Growth Prospects
Increased resource leverage will help HF Group to improve its market positions, introduce new financial products, and enhance its activities.
Enhanced Shareholder Value
It is in this backcloth of success of the Rights Issue that the company is placed in a vantage point to deliver returns and restore shareholders’ confidence on the path the company will take.
HF Group experience is a significant indicator of the company’s breakthrough in the competitive financial stream and its ability to adapt and grow in the future.