NIC Bank new shares began trading at
the Nairobi Securities Exchange (NSE) today following a successful Rights Issue
which saw the offer oversubscribed by 238 per cent. The offer received
applications of over Kshs7 billion from a target of Kshs2 billion.
Speaking during
the bell ringing ceremony to mark the commencement of trading of the new shares
at the Nairobi Securities Exchange, NIC Bank Chairman Mr. James
Ndegwa said the proceeds from the Rights Issue would be used to fund the
bank’s regional expansion plan and upgrade its core banking system.
“Our
strategic intent is to spread our business outlets to the rest of the East
African region,” said Mr. Ndegwa. He also noted that the bank was keen on tapping
into the numerous opportunities arising from the regional convergence of
markets and economies under different trade agreements such as the East African
Community.
In support of NIC’s effort, the NSE Chairman,
Mr. Eddy Njoroge emphasized
the need for financial institutions to seize the various opportunities available
for raising additional capital through the capital markets. He observed that
this was NIC’s second successful Rights Issue after a previous one conducted in
2007 raised a total amount of Kshs 1.1 billion. He went further to laud the banks’ continued accomplishments.
Finance
Minister Njeru Githae who was the guest of honour at the ceremony noted that
the result of NIC Bank’s Right Issue had indicated that investors had strong
faith in Kenya’s economy, notwithstanding the forthcoming general elections in
2013.
“A
238% oversubscription level is a seal of approval by investors, both local and
international, of Kenya’s economy as well as our capital market given that this
has been achieved just a few months before the 2013 General Elections,” the
Minister said.
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