CFC-Stanbic rights issue oversubscribed by 112 per cent

By Jackson Okoth

The CfC Stanbic Holdings Ltd rights issue has attracted an oversubscription of 112 per cent, providing the bank with the necessary cash to expand its operations.

The bank has been seeking fresh equity capital, that will allow it increase deposits and assets over the next years.

According to the company’s rights issue and allocation results released yesterday, some 395 million shares were issued and fully paid for after the rights issue.  Gross proceeds from the rights issue was Sh4.01 billion while net proceeds was Sh3.8 billion.

Foreign investors took up 74 per cent of the rights issue, while local investor bought 25 per cent of the shares. All participants were offered four  new shares for every nine held.

The closing date for receipt of applications and payment of new shares was October  16.

On offer were 121,637,427 new shares at Sh33 per share to raise about Sh4 billion the basis of four new shares for every nine ordinary shares held by Monday  August 20.

Eligible shareholders are reminded that payment of irrevocable bank guarantees will be made on November 5, while update of electronic accounts and dispatch of certificates for the new shares will be done the following day.

 All refund cheques for all those who were not able to receive allocation applied for will be done on November 6.