UAP Group Managing Director Dominic Kiarie. PHOTO | FILE
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UAP said in a statement that it had received 159.6 per cent subscription as it got a total of Sh3.195 billion, signalling investor confidence in the unquoted firm.
UAP Holdings Limited, Kenya’s third-largest underwriter by 2012 gross premiums, has raised an extra Sh1.2 billion in the recently floated corporate bond in which it sought Sh2 billion.
The insurance firm said in a statement that it had received 159.6 per cent subscription as it got a total of Sh3.195 billion, signalling investor confidence in the unquoted firm.
“UAP accepted offers of Sh2 billion of which institutional investors received an 89.4 per cent allocation while retail investors received a 10.6 per cent allocation,” said the company.
This means that institutions got Sh1.79 billion while the retail investors got Sh210 million from the allocation of the medium-term notes.
“The proceeds from the issue of notes will be applied by UAP for its general corporate purposes including capital management, funding long term assets and investments in subsidiaries,” said UAP Holdings Group managing director Dominic Kiarie.
He said the subscription was an endorsement of the company’s growth strategy.
It is the first time UAP Holdings is tapping into the Kenya debt capital market. The notes were issued on July 28 and are scheduled to list on the Nairobi Securities Exchange on August 27.
The company made Sh1.8 billion in net profit in 2013.
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Note: The results are not exact but very close to the actual.
