HF Group Plc, a leading Kenyan financial solutions provider, concluded its rights issue, surpassing its target by attracting KES 6.38 billion in applications against the targeted KES 4.6 billion.
This translates to a subscription rate of 138.32%.
Shareholders applied for 1,595,995,966 shares, exceeding the initial offer of 1.5 billion shares. The take-up percentage under entitlement reached 61.65%.
The rights issue, priced at KES 4.00 per share, included a greenshoe option to accommodate oversubscriptions, resulting in total gross proceeds of KES 5,999,981,020.
Capital Allocation
The proceeds will be utilised to scale operations across key segments, including mortgage lending, bancassurance, and property development while ensuring compliance with the upcoming KES 10 billion minimum capital requirement for banks.
HF Group CEO Robert Kibaara expressed gratitude for the overwhelming shareholder support, stating, “We are now firmly on the path to powering our next phase of business growth.”
Shares will be credited to shareholder CDS accounts on December 23, 2024. Trading of the new shares will commence on the Nairobi Securities Exchange on December 24, 2024.
HFC Group capital adequacy ratios before and after the rights issue
| Capital Adequacy Ratios | Before the rights issue | After the rights issue | Change |
| Core Capital/Total Deposit Liabilities | 3.7% | 20.6% | 16.9% |
| Minimum Statutory ratio | 8.0% | 8.0% | 0.0% |
| Excess | (4.3%) | 12.6% | 16.9% |
| Core Capital/Total Risk Weighted Assets | 4.3% | 18.0% | 13.7% |
| Minimum Statutory ratio | 10.5% | 10.5% | 0.0% |
| Excess | (6.2%) | 7.5% | 13.7% |
