DTB rights issue oversubscribed by 340pc to hit Sh16bn bids
What you need to know:
- The value of the applications has surpassed our target by a significant margin of Sh12.4 billion,” Ms Devji said in a statement on Wednesday while announcing the results.
- None of the past 18 rights issues undertaken at the Nairobi Securities Exchange (NSE) have attained such a high level of subscription in the past decade.
Diamond Trust Bank rights issue has been oversubscribed by 340 per cent. The bank sought to raise Sh3.6 billion additional capital from its shareholders but the offer attracted bids worth Sh16 billion.
The money raised is to fund expansion activities across East Africa. The bank had offered 22 million rights to shareholders at a discounted price of Sh165.
The bank’s chief executive officer, Ms Nasim Devji, said a significant number of shareholders controlling about 80 per cent of the institution’s equity took up their rights, with many applying for additional shares.
“The strong subscription is a reflection of the relentless support, unswerving loyalty and solid confidence our shareholders have in the strategic direction that DTB has chosen.
SURPASSED OUR TARGET
The value of the applications has surpassed our target by a significant margin of Sh12.4 billion,” Ms Devji said in a statement on Wednesday while announcing the results.
DTB’s previous three rights issues — undertaken in 2006, 2007 and 2012 and raising a total of Sh4.2 billion — were also oversubscribed at 297 per cent, 178 per cent and 186 per cent, respectively.
None of the past 18 rights issues undertaken at the Nairobi Securities Exchange (NSE) have attained such a high level of subscription in the past decade.
Mr Amish Gupta, a director of investment at Standard Investment Bank (SIB), said the bank’s strong prospect for growth across its units in East Africa and the attractive pricing were attractive to shareholders.
