Diamond Trust Bank, DTB, is pleased to announce the official listing of its rights issue of 22 million shares on the floor of the Nairobi Securities Exchange, NSE. The bank raised KSh3.63 billion in additional capital by offering some 22 million rights to its shareholders at a discounted price of KSh165, which was subscribed at a record 440 percent.
Last week, DTB’s shares were trading at an all-time high of KSh260 per share, resulting in a capital appreciation of nearly 60 percent over the price at which the rights were issued.
DTB Group Chairman Abdul Samji said that the that the Rights Issue subscription of 440 percent was recording breaking for DTB which has undertaken three rights issues previously and also for the NSE as no previous rights issues undertaken at the bourse over at least the past ten years it had achieved such a high level of subscription.
He said: “We thank our shareholders for their significant show of support and continuing confidence in DTB. The funds raised will further strengthen our ability to achieve our long term strategic objectives anchored on deepening our presence in Eastern African and expanding to new markets in Sub Saharan Africa.”
In line with the Information Memorandum, supporting the rights issue, the funds raised will be used mainly to continue with DTB’s expansion plans and explore additional opportunities to further strengthen its presence in Kenya and the sub region, through its affiliates in Uganda, Tanzania and Burundi, as well as explore new investment opportunities in surrounding markets.
NSE Chairman Eddy Njoroge, said that increased attempt by quoted companies to raise fresh funds through rights issue is an attestation that the primary segment of the Kenyan capital market has picked up.
“This is DTB’s fourth successful Rights Issue after three others in 2006 (KSh776 million), 2007 (KSh1.6billion) and 2012 (KSh1.8billion). DTB has used the funds to invest in its businesses across Burundi, Kenya, Uganda and the United Republic of Tanzania.
This has enabled DTB to use the capital markets to expand its footprint and brand across the region. The latest capital raise will be used to bolster its core capital” stated Njoroge.
He added that the success of the DTB rights issue, signals the great demand from domestic and international investors for investment opportunities in the capital markets.
With the listing today, the market capitalization of DTB group stands at KSh63 billion, rising by a massive 65 percent in the past one year.