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