HF Group nets Sh6.4b from oversubscribed rights issue

From left: HF Group Director 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. [Courtesy]

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

This achievement signifies strong investor confidence in the company's future growth prospects.  

The firm said the funds raised will be utilised to fuel the Group's expansion plans, including strengthening its technology infrastructure and broadening its product offerings. This strategic move positions HF Group to evolve into a comprehensive financial institution and enhance customer experience.

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 9equivante

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,” he said 

"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."

HF Group chairperson Prof. Olive Mugenda, expressed gratitude for the strong support from both institutional and retail shareholders. 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,” said Prof. Olive Mugenda

With this successful capital injection, HF Group is on track to meet the upcoming capital regulations, which mandate banks to increase their capital base to KSh 10 billion by 2028.

The newly issued shares will be credited to shareholders' Central Depository System (CDS) accounts on Monday, with trading commencing on the Nairobi Securities Exchange the following day.