Companies

Uchumi prices rights issue at Sh9 per share

uchumi

Uchumi has set the price of its three for eight rights issue at Sh9 per share. PHOTO | FILE | NATION MEDIA GROUP

Uchumi Supermarkets set the price of its three for eight rights issue at Sh9 ($0.1008) per share, it said on Tuesday.

The retailer plans to raise Sh896 million through the issue to fund expansion and will be offering a total of 99,534,980 new shares. The price of the rights offer represents an 11.33 per cent discount to the shares' closing price of Sh10.15 on Monday.

READ: Regulator approves Uchumi plan for Sh1bn rights issue

The government, which is a part-owner of the chain, has already committed to take up its entitlement, representing a 13.8 per cent of the issue, Uchumi said in a statement.

The register for the offer will close on October 22, Uchumi said. The 38-year-old chain, which has outlets in Uganda, is the oldest retailer in Kenya.

-Reuters-