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DTB Kshs 3.6B Rights Issue Subscribed By A Massive 440 Percent

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DTB recently concluded its rights issue and has received applications worth Kshs 16 billion.

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The quantum of this year’s rights issue was Kshs. 3.6 billion, resulting in a massive subscription of 440 percent for the issue, making it a record breaker at the Nairobi Securities Exchange, as none of the past 18 rights issues undertaken at the bourse over the last 10 years have achieved such a high level of subscription.

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DTB’s previous three rights issues, undertaken in 2006, 2007 and 2012 – through which a cumulative amount of Kshs 4.2 billion was raised – were also subscribed beyond their targeted cash calls i.e. at 297 percent, 178 percent and 186 percent, respectively.

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Nasim Devji, DTB’s CEO, said: “The strong subscription to our rights issue is a reflection of the relentless support, unswerving loyalty and solid confidence our shareholders have in the strategic direction that DTB has chosen. The value of the applications has surpassed our target by a significant margin of Kshs 12.4 billion.”

 

The bank had offered some 22 million rights to shareholders at a discounted price of Kshs 165.

 

Devji said the bank’s board had approved the full allotment of all applications for rights entitled to shareholders, while additional shares were allotted on a pro-rata basis at a rate of 5.83 percent.

 

With these new funds we will be able to continue with our expansion plans and explore additional opportunities to further strengthen our presence in Kenya and the sub- region, through our affiliates in Uganda, Tanzania and Burundi, as well as explore new investment opportunities in surrounding markets,” said Devji.

 

The CEO added that the additional capital will boost the bank’s core capital base to Kshs 20 billion, positioning DTB as one of Kenya’s highest capitalized banks. This significant expansion drive is in line with Diamond Trust Bank group’s long-term strategy, dubbed as Vision 2020, which is aimed at up-scaling its operations throughoutEast Africa by continuing to expand its presence in major commercial sectors across the four countries, invest in alternate delivery channels and expand to other emerging markets in the region.

 

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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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