Bank floats shares as it seeks Sh276 million from shareholders

The Key Microfinance Bank PLC has invited its shareholders to purchase up to 13, 832, 287 ordinary shares at sh20 each in the bank.

The offer is first open to the existing 253 shareholders and then to any other investor, both local and international.

The raised funds will be used to accelerate growth of the bank locally and internationally, a senior manager said on Friday.

The bank which started in Meru as Remu Microfinance but recently rebranded into Key Microfinance after the approval of the plan by the Central Bank and the Registrar of Companies.

During the bank’s 8th Annual General Meeting held on May 18, Luke Kinoti was re-elected as Chairman, and Mr Daniel Mugao re-elected as director. Seasoned banker Gregory Siro was elected as the CEO.

Mr Charles Ringera was elected as a director after approval by the Central Bank of Kenya. Other directors of the bank include Mr Daniel Kamau, Mr Justus Mutiga, Mrs Margaret Gitonga, Ken Mbiuki and Ms Suzanne Muthaura

According to Mr Kinoti, the institution is seeking to raise growth capital amounting to Sh276 million through the issuance of the shares to their existing shareholders appearing on the register as members as at May 28, 2019.

“The capital was launched as per strategic plan which mapped out rebranding and raising growth capital as a priority for the bank in 2019,” said Kinoti.

Mr Kinoti said the bank was giving an opportunity to its shareholders to increase their investment and maintain their existing ownership stake.

The shares will be issued on pro-rata basis to all existing shareholders subject to a minimum subscription amount of Sh100, 000.

The capital call followed the institution’s Annual General Meeting on May 26 when Kinoti was re-elected as chairman and Gregory Siro recruited as the CEO.

Mr Kinoti said the projected growth in total assets of the bank is in line with the current strategic plan where the institution is to attain total assets of Sh12 billion by 2022.

On the Sh20 per share offer Mr Kinoti said: “The offer price per share is Sh20 which translates to a discount of 15 per cent from the current value per share.”

The offer price was determined by the current value per share, existing legal restrictions on the offer price per share in compliance with the memorandum and articles of association and business performance for the last four years.