Family Bank to Raise KES 4Bn through Rights Issue

By Soko Directory Team / Published April 27, 2016 | 7:08 am

Nairobi Securities Exchange re-opened with minimal participation from foreign investors. Varied trends were posted across the different market indicators. The NSE-20 share index appreciated by 0.23% to close at 4019.85 points while the NSE All Share Index bucked the trend, losing ground by 0.88% to perch at 146.25 points. The NSE 25 Share index was also on the losing front, dipping by 0.54% to 4214.24 points. Market capitalisation contracted by 0.88% to close at KES 2,061.51 billion, whilst the equity turnover also edged downwards by 62.29% to KES 214.47 million, as a result of reduced volumes.

The A/D ratio weakened to 0.64x from 0.90x, indicative that the market conditions had worsened from the previous close.

Family Bank Ltd – one of the actively traded over the counter stocks- announced plans to raise KES 4Bn through a rights issue planned for later in the year, in order to boost capital ratios and fund regional expansion. The bank has actively engaged shareholders through corporate actions, with the latest KES 3.1Bn cash call conducted in 4Q2014 and KES 2Bn raised through a bond issue in 2015. The rights issue will result in an additional 200 million new shares created, with a share currently trading at an average price of KES 30. The bank’s shareholders also gave a nod during the AGM, for the setting up of a non-operating holding company; Family Bank Group Plc which will then own the subsidiary- Family Bank Kenya Ltd.

Equity Market Highlights

I&M Holdings Ltd (NSE: I&M) was the most actively traded stock today accounting for 29.93% of the total market value traded activity. KCB Group Ltd (NSE: KCB) also registered stout levels of activity, accounting for 13.36% of the total market turnover.

Marshalls (E.A.) Ltd (NSE: MASH) was the top gainer of the day, advancing by 9.09% to close the day at KES 9.00, on account of 300 shares traded. Nation Media Group Ltd (NSE: NMG) gained 5.95% to close the day as the second best performer at KES 178.00.

Standard Chartered Bank Kenya Ltd (NSE: SCBK) crossed the day’s minimum limit; following a decline of 10.44% to close at KES 223.00. Trans-Century Ltd (NSE: TCL) similarly lost 10.00% to close at KES 4.95.

About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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