HF Group Floods The Market With 769,228,336 Ordinary Shares At Ksh 4 Per Share

HF Group, whose Q3 profits increased by 105 percent, hitting 483 million shillings, a 247 million shillings rise, has offered to Shareholders by way of renounceable rights, a total of 769,228,336 ordinary shares at the Offer Price of KES 4 per share.

At the same time, HF Group has also offered to Shareholders the option to subscribe for additional shares without restriction to their initial entitlement amounting to 384,614,168 ordinary shares.

There will also be a green shoe option capped at 30% of the New Shares comprising 346,152,751 ordinary shares at the Offer Price to cater for oversubscription of the New Shares.

The Rights Issue is on a basis of a ratio of 2 New Shares for every 1 Existing Share being the Entitlement Ratio. The Entitlement Ratio once declared, will not be altered.

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Who are HF Group and what makes them tick?

HF Group Plc is an integrated financial solutions provider that is registered as a non-operating holding company (under the Banking Act Cap.488) and licensed by the Central Bank of Kenya (CBK).

The Group commenced operations on November 18th 1965, and has diversified from being a mortgage financier to a provider of integrated financial solutions with interests in Personal Banking, Business Banking, Institutional Banking, Trade Finance, Diaspora Banking, Treasury as a business, Property and Insurance.

HF Group is listed at the Nairobi Securities Exchange since 1992. The company restructured its business and rebranded in August 2015, transforming from the single entity – Housing Finance, to the non-operating holding company, HF Group, with four subsidiaries including HFC, HFDI, HF Bancasurance Intermediary (HFBI), and HF Foundation.

What is the Rights Issue?

A Rights Issue is an invitation from a company to its existing shareholders to purchase additional shares in the company. A Rights Issue is one of the capital market instruments through which a company may raise additional capital.

For HF Group, shareholders will be entitled to 2 new ordinary shares for every 1 ordinary share held (ratio of 2:1) with a par value of Ksh 5.00 per share and an offer price of Ksh 4.00 per share with an option to apply for one or more additional shares for every 1 ordinary share held.

Why the Rights Issue for HF Group?

In January 2022, HF Group embarked on implementation of a new growth strategy for the strategic cycle 2022 to 2026, premised on six pillars namely repositioning our brand, scaling up the engines of growth, driving efficiency through technology, beyond service excellence, solidifying the capital base and building its culture and capabilities.

In order to power this growth, and as part of HF Group’s strategic initiative to solidify the capital base, the company decided to undertake a Rights Issue.

On 12th August 2024, the Directors of HF Group PLC resolved to offer up to 1,499,995,255 new ordinary shares of par value KES 5 (inclusive of a Greenshoe option of 30%) to (”shareholders”) on the register (“Rights Offer” or the “Transaction”) at the book closure date in proportion as nearly as is practicable of up to three new ordinary shares for every share held.

“The Shareholders approved the Rights Issue on Wednesday 4th September 2024. We obtained full regulatory approval from the Central Bank of Kenya on 24th October 2024 and from the Capital Markets Authority, and the Nairobi Securities Exchange on 25th October 2024,” said HF Group in a statement.

Use this link on how to apply for the Rights Issue: https://www.hfgroup.co.ke/rightsissue 

Read Also: HF Group’s Profits After Tax Spike By 105%