HF Group set to raise Ksh.6B through CMA-approved rights issue

Lender HF Group has received regulatory approval from the Capital Markets Authority (CMA) to raise up to Ksh.6 billion through a Rights Issue transaction.

The approved Rights Issue will offer up to 1,499,995,255 new ordinary shares at a price of Ksh.4.00 per share.

The Rights Issue is structured to offer shareholders two new ordinary shares for every one existing ordinary share held, with the shareholders having the option to apply for additional shares.

In addition, a green shoe option of up to 30% (equivalent to 384,614,168 shares) has been approved to accommodate any potential oversubscription. The new ordinary shares will be listed on the Nairobi Securities Exchange.

The capital will enable the Group to expand its product offering, strengthen its technology platforms, and position itself for future growth. HF Group is in its third straight year of profitability.

“This capital investment marks a pivotal milestone in HF Group’s ongoing transformation journey and reinforces our dedication to delivering long-term value to our stakeholders," said HF Group CEO Robert Kibaara.

“Over the past two and a half years, we have demonstrated the strength and resilience of our business by registering year-on-year growth in profitability. I am confident that with the capital injection, we will be well positioned to accelerate further growth into the future."

Britam Group, HF Group’s major shareholder, has confirmed that it will be taking up its full Rights.

Other principal shareholders are also supportive of the Transaction. Shareholders must be on the register by 3pm on Friday, November 1, 2024, the Record Date, in order to participate in the Rights Issue.

The Offer will open on Tuesday, November 12 , 2024, and close on Monday, December 9 , 2024 at 5pm.

On Monday, August 12, 2024, the Board of Directors of HF Group passed the resolution to offer up to 1,499,995,255 new ordinary shares (inclusive of a 30% green shoe option) via a Rights Issue.

The shareholders subsequently approved this during the General Meeting held on Wednesday, September 4th, 2024.