The shareholders of Diamond Trust Bank (DTB) have approved a KES 1.8 billion rights issue as proposed by the Board.
DTB is Kenya’s sixth largest bank in terms of pre-tax profit as it reported an after tax profit of KES 2.99 billion for the financial period ended December 2012. This represented a 21% increase in profits as compared to a similar period the previous year.
During its Annual General Meeting (AGM) on Friday 4th May 2012 the shareholders approved plans to raise the aforementioned capital through the issuing of 24.5 million ordinary shares to shareholders. The rights issue would commence as soon as next month.
This would be the third rights issue carried out by the bank, the first was in 2006 and the other was in 2007. Every shareholder will be offered eight new shares for every one currently held.
The capital raised is to be used for expansion as the bank sets out to open up 5 new branches in Kenya, expanding its network to 41 branches. The bank also plans to expand into South Sudan, the Democratic Republic of Kenya and Mozambique by the end of the decade.