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NAIROBI — HF Group has announced the successful conclusion of its rights issue, which was oversubscribed by 38.32 percent.
The company had targeted a capital raise of Sh4.6 billion but received Sh6.38 billion in applications from shareholders.
“The outcome of the Rights Issue has been an overwhelming success. We went to our shareholders asking for additional investment of KSh 4.6 billion, and upon conclusion, we received applications totaling KSh 6.38 billion. This is a clear demonstration of the confidence our shareholders have in our future,” Robert Kibaara, CEO of HF Group said.
“We are now firmly on the path to powering our next phase of business growth.”
He added that the capital raised is central to HF Group’s five-year strategy to evolve into a fully diversified financial institution.
The funds will be used to expand the Group’s product offerings, enhance its technology platforms, and strengthen its position as it pursues sustainable growth.
The rights issue was priced at Sh4 per share and offered shareholders the opportunity to subscribe for two new ordinary shares for every existing share held.
The issue also included a green shoe option, allowing for an additional 30 percent allocation (equivalent to 384.6 million shares) to accommodate the oversubscription.
In total, HF Group received applications for 1.6 billion shares, amounting to Sh6.38 billion.
The successful rights issue also positions HF Group to comply with new capital regulations requiring banks to raise their capital base to Sh10 billion by 2028.
Shares allocated through the rights issue will be uploaded to shareholders’ CDS accounts on Monday, December 23, 2024, with trading set to begin on the Nairobi Securities Exchange on Tuesday, December 24, 2024.
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