Jamii Bora seeks a KSh520 million in Rights Issue

A perfect opportunity to invest.

Jamii Bora Bank has launched a Rights Issue targeting to raise Sh520 million from this. The Rights Issue will trade through private placement and will see Jamii Bora issue 3.7 million new ordinary shares at KSh140 per share.

These shares will be issued at the ratio of two new ordinary shares for every five ordinary shares held, with the Rights Issue set to close on the 9^th of November.

The purpose of the Rights Issue is to increase its capital base and to pave the way for the bank to expand in the coming years and in the process increase the shareholder value and reach out to a wider market according the group’s Chair, James Gacheru.

Additional capital raised from the Rights Issue will go towards funding its asset growth and investment in the branch network and alternative channels in the country.

In a bid to attain the mid-tier status the bank requires KSh300 million in the next four years and an additional KSh200 million core capital to meet the Sh1 billion requirement set out by the Central Bank of Kenya.

The bank’s target is to grow its customer base to six million up from the current 366,000 by 2018.

Asterisk Holdings Limited and Jamii Bora Scandinavia AB, whose total shareholding comprises 48.7 percent of the shares of Jamii Bora Bank, have indicated that they intend to take up their full Rights.

This will resultantly leave a minimum of 1,635,714 new shares worth Sh229 million, to be taken up and fully paid for in the Rights Issue to the Bank’s 582 shareholders.

The bank managed to record a profit before tax of Sh18 million as of June this year up from a loss position of Sh37 million the previous year.

Now, this is definitely an opportunity to make a choice that will benefit your future.

http://www.asterisk.org/