The CFC Stanbic Holdings Rights Issue approved by shareholders in December last year will begin today with the first day of trading the CFC Rights at the Nairobi Securities Exchange (NSE). Learn more about a rights issue here.
The fourth rights issue this year after those of Kenya Airways, Diamond Trust Bank and NIC Bank is seeking to raise 4 billion shillings to expand CFC Stanbic Bank which is the main subsidiary of CFC Stanbic Holdings. CFC Stanbic Bank is in turn the parent company of CFC Stanbic Financial Services established in the year 2000.
CFC Stanbic Holdings is not to be confused with insurance based CFC Insurance Holdings which is also listed on the NSE. Both holding companies are subsidiaries of African conglomerate Standard Bank Group.
CFC Stanbic Holdings is offering its shareholders a total of 121,637,427 new shares at KES 33 per share which represents a 31 percent discount on current CFC shares currently priced at KES 48 at the stock market. Each shareholder is entitled to 4 new shares for every 9 that they already hold.
According to the CFC rights issue information memorandum, key shareholder and parent company Stanbic Africa will take up its full rights as well as those not taken up by eligible shareholders. This almost guarantees that CFC will raise the targeted 4 billion shillings
The rights issue will close on Monday 8th October.