Money Markets
KCB to release rights issue results on Tuesday
Central Bank of Kenya Governor Njunguna Ndungu (left), KCB Chairman Peter Muthoka and the bank's CEO Martin Oduor Otieno unveil the KCB Rights Issue at the Stanley Hotel on June 15 2010. Photo/FREDRICK ONYANGO
Posted Tuesday, August 10 2010 at 00:00
A successful rights issue will be an indicator that other firms can raise money through the equities market, which is the more expensive route compared to the bonds market which other firms such as Housing Finance and KenGen have chosen.
Failure to secure the target will mean that the Sh17 rights price was too high for some investors.
KCB offered 887.1 million ordinary shares to eligible shareholders at the ratio of two new shares for every five ordinary stocks held — at a discounted price of Sh17.
This will be the third time the bank is seeking to raise funds through a rights issue after it raised Sh2.45 billion in 2004 and Sh5.5 billion in 2008, both were oversubscribed.
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