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DTB Kenya To Raise Capital Of Ksh.3.63 Through Right Issue

 

 

 

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Diamond Trust Bank Kenya (DTB) intends to raise KShs 3.63 billion ()in fresh capital, following the approval of its Rights Issue by the Capital Markets Authority & Nairobi Securities Exchange on Tuesday, 17 June. This followed approval obtained from the bank’s shareholders, at an extraordinary general meeting held on 4 March 2014.

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Through the rights issue, DTB intends to offer 22 million additional shares at a rights price of KShs 165 per share. This represents a hefty discount of 32% over the bank’s share price, which traded at KShs 244 at the bourse yesterday.

Nasim Devji, the bank’s Managing Director, thanked the Capital Markets Authority and the Nairobi Securities Exchange for their timely approvals.

“The Board resolved to offer the Rights at an attractive discount over the prevailing market price, given the unyielding support and unwavering loyalty demonstrated by the shareholders, which has seen DTB’s operations grow from strength to strength across Eastern Africa in recent years”, said Devji.

In the last year, the bank’s share price has rallied, rising by 44 percent since June 2013 and by 27 percent in the last six months.

Devji advised that the additional capital raised will play a key role to fund future asset growth, investment in the branch network and alternative channels in Kenya, as well as strengthen the Group’s presence in East Africa, through additional investments in DTB’s subsidiaries in Tanzania, Uganda and Burundi. It will also enable the bank to explore future investment opportunities in other new markets in the region.

The rights issue will be launched on 30 June 2014 and will run until 25 July 2014. All shareholders in the bank’s share register as at close of business 24 June 2014 will be entitled to participate in the rights issue. Other investors interested in acquiring the rights may bid for them during the trading window which is expected to run from 2 July 2014 to 15 July 2014.

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Caroline Vutagwa
Caroline Vutagwahttps://my.techmoran.com
Minding my own business is not enough for me that's why you will always find me minding Africa's Businesses as well as Technology and of course letting you know about it. Talk to me on [email protected]

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