NAIROBI, Kenya- HF Group Plc has received regulatory approval from the Capital Markets Authority (CMA) to raise up to Sh.6 billion through a Rights Issue, marking a key step in the company’s journey to becoming a full-service banking institution.
In an announcement, HF Group revealed it would offer up to 1.5 billion new ordinary shares on the Nairobi Securities Exchange (NSE), priced at Sh.4.00 per share.
This ambitious capital generation effort aims to solidify HF Group’s transformation strategy and enhance shareholder value.
To participate in the Rights Issue, existing shareholders are advised to register by Friday, November 1, 2024, at 3 p.m., the official Record Date.
The offering grants shareholders two new ordinary shares for each existing share they hold, with an additional option to purchase more shares based on availability.
This structure presents a unique investment opportunity for shareholders to not only strengthen their stake in HF Group but also support its transformation efforts.
HF Group has also introduced a green shoe option, allowing for up to 30pc more shares (equivalent to 384.6 million shares) to be issued in the event of oversubscription.
Now in its third consecutive year of profitability, HF Group views this capital injection as pivotal for its long-term vision.
CEO Robert Kibaara highlighted that the Rights Issue aligns with HF Group’s strategic shift toward a fully diversified financial institution, with a focus on delivering sustainable value to its stakeholders.
“This capital investment marks a pivotal milestone in HF Group’s transformation journey,” Kibaara stated, emphasizing the Group’s commitment to a sustainable, diversified business model.
Chairperson Olive Mugenda encouraged shareholders to take advantage of the Rights Issue, stressing the importance of their support in achieving HF Group’s future ambitions.
“As the Group embarks on this transformative journey, we remain dedicated to innovation, excellence, and delivering exceptional value to all our stakeholders,” she noted.
With the CMA’s green light, HF Group is poised to raise the capital needed to fund its expansion and diversify its financial services.
By inviting shareholder participation in the Rights Issue, HF Group strengthens its financial foundation while offering investors a role in the company’s future direction.
For shareholders, this opportunity is both an investment in HF Group’s evolving business model and a commitment to long-term growth.
