The Standard Group Plc is a multi-media organization with investments in media platforms spanning newspaper print operations, television, radio broadcasting, digital and online services. The Standard Group is recognized as a leading multi-media house in Kenya with a key influence in matters of national and international interest.

Standard Group Plc HQ Office,
The Standard Group Center,Mombasa Road.
P.O Box 30080-00100,Nairobi, Kenya.
Telephone number: 0203222111, 0719012111
Email: [email protected]

NEWS & CURRENT AFFAIRS

The Nairobian

HF Group raises Sh6.4b from rights issue

Breaking news

By Boniface Mithika | Dec 20, 2024

HF Group Director of Strategy and Business Performance Tonney Agira, CFO Sammy Kamanthi, GM Marketing, Corporate Affairs and Citizenship Achieng Oluoch, Group CEO Robert Kibaara and HFC Managing Director Peter Mugeni laud the rights issue. [courtesy]

Financial solutions firm HF Group has successfully concluded its Rights Issue, securing an oversubscription of 138.32 per cent.

The firm said the funds raised will be utilised to finance the group’s expansion plans, including strengthening its technology infrastructure and broadening its product offerings.

The Rights Issue, priced at Sh4.00 per share, offered shareholders the opportunity to acquire two new shares for every one existing share held.

It had a green shoe option of up to 30 per cent (equivalent to 384.614 million shares) to accommodate any potential oversubscription.

The total number of new shares applied for under the Rights Issue (entitlement shares plus additional shares) was 1.59 billion shares with a total gross value of Sh6.38 billion.

Keep Reading business

The total subscription amounted to Sh6.38 billion. HF Group chief executive Robert Kibaara said the outcome of the Rights Issue exceeded expectations. “We went to our shareholders asking for additional investment of Sh4.6 billion. Upon conclusion of the process, we have received applications of Sh6.38 billion. We are now firmly on the path to powering our next phase of business growth,” Kibaara said.

“These funds will go towards expanding the growth of our business. 85 per cent will go towards this while 15 per cent t will go towards technology and digitisation of the business to increase efficiency and customer experience.”

HF Group chairperson Olive Mugenda said the company is now well-positioned to unlock value for its shareholders in the short term.

“This is a great show of confidence by our shareholders. Our key shareholders Britam and NSSF as well as our retail shareholders demonstrated immense confidence in the group by taking up their rights. We have now set up a foundation for growth and we look forward to unlocking value for our shareholders in the short term,” she said.

The capital injection puts HF Group on track to fully comply with the new capital regulations that will see banks expected to grow their capital base to 10 billion by 2028. [Boniface Mithika]