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[2008-06-04] Housing Finance targets Rights Issue funds for expansion
Mortgage financier, Housing Finance will use funds from the just floated Rights Issue to consolidate its market position and further grow its business.
Managing Director, Mr. Frank Ireri, said the expected KSh2.3 billion capital injection realised from the rights issue would also attract more funds for its products, turnkey solutions on all types of property funding and development across the value chain.
Ireri expressed optimism that the issue would be successful.
"We are confident we will raise the required capital as all indications show that our shareholders want to share in our growth and resource allocation for the property sector, where we are already a dominant player," he said.
Ms Wanjiku Mugane, the chief executive officer of First Africa Capital, the transaction advisor to the Rights Issue, said money raised would help the company bolster its lending capacity by expanding its deposit base and leveraging its balance sheet.
Trading:
According to the Rights Issue arrangement, the company’s shareholders who were in the register as at May 12 were allotted one new ordinary share for every one share held.
The mortgage financier floated an additional 115 million new ordinary shares at KSh20 a share. Trading of the rights kicked off on May 30. Mugane said the new shares rank pari passu in all respects with existing ordinary shares.
Housing Finance has over the last two years launched several products and property financing solutions in the market to meet the ever-growing demand in the housing and property sector.
Recently, the company launched a concept Makao, that provides potential homeowners with a one-stop solution.
The company is well known for housing estates in parts of the country such as Buru Buru, Ngei, Otiende, Golf Course, Komarock in Nairobi and others in Kisumu, Mombasa, and Kitale.
The Rights Issue comes hot on the heels of Kenya’s biggest primary share offer – The Safaricom IPO.
Source: © Copyright 2008 Standard Group
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