The Lower Eastern Times Opening The Third Eye
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HF Group plans to raise Ksh.6 billion through a rights issue approved by the Capital Markets Authority (CMA).
The rights issue will allow the company to offer up to 1,499,995,255 new ordinary shares at Ksh.4.00 each. Shareholders can purchase two new shares for every existing share they own, with the option to apply for additional shares.
Additionally, a green shoe option has been approved, allowing for a potential oversubscription of up to 30%, or 384,614,168 shares. These new shares will be listed on the Nairobi Securities Exchange.
The funds raised will help the Group expand its product range, enhance its technology platforms, and prepare for future growth. HF Group has been profitable for three consecutive years.
CEO Robert Kibaara noted that this investment is a significant step in the Group’s transformation and reflects their commitment to delivering long-term value to stakeholders. He expressed confidence that the new capital will facilitate further growth.
Britam Group, the largest shareholder of HF Group, has confirmed its intention to fully participate in the rights issue, with other major shareholders also expressing support. To be eligible to participate, shareholders must be registered by 3 p.m. on Friday, November 1, 2024, which is the Record Date.
The offer will open on Tuesday, November 12, 2024, and close on Monday, December 9, 2024, at 5 p.m.
On August 12, 2024, HF Group’s Board of Directors approved the issuance of up to 1,499,995,255 new shares, including the green shoe option, and shareholders confirmed this during a General Meeting on September 4, 2024.
