More investors eye Stanchart’s Sh3.2bn rights issue
PHOTO | WILLIAM OERI Ms Wanjiku Mugane MD Corporate Advisory and Finance, Africa (centre) with Mr Richard Etemesi (right) MD, Standard Chartered Bank Kenya and Standard Chartered Bank Kenya Chairman Mr Wilfred Kiboro on October 2, 2012 during the launch of the rights issue breakfast meeting held at the Intercontinental Hotel Nairobi.
What you need to know:
- Lead transaction advisor Standard Investment Bank (SIB) says many retail investors have applied for additional rights, with many of the participating stockbrokers indicating increased activity since mid-last week
- SIB says that many of the investors are torn between wanting to take more rights and buying more Stanchart shares at the Nairobi Securities Exchange, “owing to the good dividend payout that has defined the bank”
- Standard Chartered Plc — which owns 74 per cent of the bank — has taken Sh2.4 billion of the rights’ value, leaving around Sh830 million to other retail shareholders
Standard Chartered Bank’s Sh3.2 billion rights issue has received positive investor sentiment, with all indications that it will be a successful cash call.
Lead transaction advisor Standard Investment Bank (SIB) says many retail investors have applied for additional rights, with many of the participating stockbrokers indicating increased activity since mid-last week.
“We are seeing a lot of requests for the rights, especially from existing shareholders who have been with the bank for some time, and new ones who are looking for untaken rights to get a chance to own a stake of the bank,” Mr Fred Opondo of Standard Investment Bank told the Nation on phone.
SIB says that many of the investors are torn between wanting to take more rights and buying more Stanchart shares at the Nairobi Securities Exchange, “owing to the good dividend payout that has defined the bank”.
Existing and potential investors are buying the rights at Sh145 each, at one for every 13 shares held.
The offer, which opened on October 9, closes this Friday on October 26. However, the StanChart Share closed at Sh223 on Monday, with dealers saying there is a lot of demand but little offers for sale. (Read: Stanchart to raise Sh3.2bn to fund growth)
Standard Chartered Plc — which owns 74 per cent of the bank — has taken Sh2.4 billion of the rights’ value, leaving around Sh830 million to other retail shareholders.
The cash call aims at shoring up the capital position of the bank in line with Central Bank regulations. It will also help the bank undertake its expansion plans.
