NIC Bank has in an official statement released full details of the rights issue it is to carry out next month, in a move indicating that Kenya’s second biggest rights issue this year is on track to take place as planned.
The statement dated July 25th has provided the following key details on the rights issue as follows:
- NIC shareholders will have the right to subscribe for one (1) new ordinary share to every four (4) existing ordinary shares.
- NIC Intends to raise 2,073,212,211 shillings by way of a renounceable Rights Issue of 98,724,391 new ordinary shares.
- The new shares will be prices at KES 21 per ordinary share.
- The register closure date for determining eligible shareholders will be on Monday July 30th 2012 at 3:00 pm.
The confirmed price of KES 21 per new share represents a 40 percent discount on the shares based on their market value on Friday. Also included in the statement was a timetable with key dates on the rights issue.
Last month, NIC Bank received CMA approval to conduct the rights issue that aims to raise capital for the bank’s local and regional expansion. Read more on the approval here.
In our next article on the NIC Rights issue, we will break-down the timetable of key dates and what will happen during those dates for you to understand. We will also explain what a rights issue is in the context of the NIC rights issue. Stay with Pesatalk for this.