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DTB rights issue attracts Sh3.36 billion

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Amish Gupta (right), director for investment banking at Standard Investment Bank with Nasim Devji, chief executive officer at Diamond Trust Bank at a past press briefing on July 17, 2012. Photo/FILE

Amish Gupta (right), director for investment banking at Standard Investment Bank with Nasim Devji, chief executive officer at Diamond Trust Bank at a past press briefing on July 17, 2012. Photo/FILE  Nation Media Group

By DAVID MUGWE

Posted  Friday, August 31  2012 at  14:23

In Summary

  • The company, on Friday said that its cash call attracted bids worth Sh3.36 billion against the Sh1.8 billion that it was seeking.
  • DTB was selling 24.45 million shares at Sh74 to existing shareholders in the ratio of 1 share for every 8 held.
  • Existing shareholders, who took up 18.24 million shares out of the 24.45 million shares on offer, will be given a full allocation.
  • The company said that the shares which were not taken will be distributed to shareholders who applied for additional shares on a pro-rata basis at the rate of 22.74 per cent.
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The Diamond Trust Bank (DTB) rights issue has been oversubscribed by 86.2 per cent.

The company on Friday said that its cash call attracted applications worth Sh3.36 billion against the Sh1.8 billion that it was seeking.

“The uptake was very high, this is the first oversubscription in almost two years,” said Amish Gupta, director for investment banking at Standard Investment Bank, one of the lead transaction and lead sponsoring brokers for the cash call.

The last rights issue that attracted more money than it was seeking was the Kenya Power cash call in November 2010 which was seeking Sh9.5 billion but was oversubscribed by three per cent and prior to that, the Standard Chartered cash call in October the same year seeking Sh2.49 billion was oversubscribed by 61 per cent.

DTB was selling 24.45 million shares at Sh74 to existing shareholders in the ratio of 1 share for every 8 held.

Existing shareholders, who took up 18.24 million shares out of the 24.45 million shares on offer, will be given a full allocation.

The company said that the shares which were not taken will be distributed to shareholders who applied for additional shares on a pro-rata basis at the rate of 22.74 per cent.

“DTB has strong corporate governance structures and management and the expansion plan is seen as solid. The price was attractive for existing, new and foreign investors,” said Mr Gupta.

NIC Bank is currently selling 98.72 million rights shares at Sh21 each, in a transaction that aims to raise Sh2 billion.