Diamond Trust Bank chief executive Nasim Devji (right) with CFO Alkarim Jiwa during a Press briefing announcing the bank's launch of Sh3.6 billion rights issue on June 30, 2014. The cash call attracted Sh15.9 billion. PHOTO | DIANA NGILA | NATION
What you need to know:
DTB said that its cash call attracted applications worth Sh15.9 billion against the Sh3.6 billion that it was seeking.
The Diamond Trust Bank (DTB) rights issue has been oversubscribed fourfold.
The company on Wednesday said that its cash call attracted applications worth Sh15.9 billion against the Sh3.6 billion that it was seeking.
DTB was selling 22 million shares at Sh165 to existing shareholders in the ratio of 1 share for every 10 held.
Existing shareholders, who took up 17.37 million shares out of the 22 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 5.83 per cent.
The Nairobi Securities Exchange-listed bank intends to use funds raised to grow its asset base, expand branches, develop new products and open shop in new markets by 2020.
“We will do this by building up a wider network of domestic branches and innovative channel delivery channels, as well as expanding outside our core East African markets,” said Diamond Trust Bank chief executive Nasim Devji.
Democratic Republic of Congo, Rwanda, South Sudan, Mozambique and Madagascar are the new markets that the bank is looking to enter.
