UAP counts on brisk last-day uptake to hit offer target
UAP Holdings managing director James Muguiyi (left) and Finance permanent secretary Joseph Kinyua during the launch of the firm’s share sale in Nairobi on November 14, 2012. Photo/SALATON NJAU
What you need to know:
The share offer which started mid-last month had targeted Sh750 million from the sale of 12.5 million shares to finance its regional expansion plan.
The money raised through the share sale is expected to mark the end of the capital raising initiative before listing of the company at the Nairobi bourse.
The firm has earmarked Sh1.8 billion for the expansion of its existing insurance and financial services businesses and Sh300 million for the group’s re-organisation.
The management of UAP Holdings has predicted that the company’s share sale would hit its target as the offer came to a close Wednesday.
The financial services group’s share offer which started mid-last month had targeted Sh750 million from the sale of 12.5 million shares to finance its regional expansion plan.
“So far there has been strong demand for the shares based on the group’s outlook but people also tend to act on the last day. We are optimistic that we will hit the target,” the deputy group managing director of UAP Holdings, Dominic Kiarie, told the Business Daily.
The closure of UAP’s share sale comes a day before the end of application period for Family Bank’s rights issue.
Shares of both companies will be trading on the over-the-counter market as they are not yet listed at the Nairobi Securities Exchange.
UAP already raised Sh4.55 billion earlier this year through loans provided by Aureos, Swedfund and AfricInvest, which are private equity funds.
The money raised through the share sale is expected to mark the end of the capital raising initiative before listing of the company at the Nairobi bourse.
UAP had set the minimum subscription value for its shares at Sh120,000, the minimum number of shares per investor being 2,000 with each being sold at Sh60.
The minimum application threshold for employees of the group had been set at 500 shares equivalent to a cost of Sh30,000.
The firm has earmarked Sh1.8 billion for the expansion of its existing insurance and financial services businesses and Sh300 million for the group’s re-organisation.
Another Sh2.15 billion has been earmarked for property investments while Sh1.066 billion has been budgeted for increasing the group’s financial assets.
Family Bank’s rights issue was launched on November 7 and comes to a close tomorrow after a 30-day offer period.
The lender has been selling 40.52 million new shares to existing shareholders in the ratio of one new share for every six held at a price of Sh31.
At the beginning of this month, Family Bank founder and chairman Titus Muya said that he will be stepping down as of January 1 next year.
The board has appointed Mr Wilfred Kiboro to the board as a non-executive director and the chairman-designate to succeed him.
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