HF Group Plc has announced plans to issue up to 1,499,995,255 new ordinary shares to its existing investors at a price of KES 5.0 per share, including a 30% greenshoe option. In an August 12th resolution, the company’s board decided that shareholders would be entitled to three new shares for every one share they currently hold.
The group’s strong performance in the first quarter of 2024, highlighted by a KES 150.3 million profit after tax driven by rapid growth in non-interest income, underscores this offering. As of December 31, 2023, Britam Holdings owned a 19.4% stake in HF Group, while Britam Life Assurance Company held a total of 22.0%.
This transaction is pending approval from shareholders, the Capital Markets Authority (CMA), the Nairobi Securities Exchange (NSE), and a “No Objection” confirmation from the Central Bank of Kenya (CBK).
The greenshoe option allows HF Group to sell more shares than initially planned if there is strong demand, a common provision in IPO underwriting agreements.
HF Group, which has been listed on the Nairobi Securities Exchange since 1992 under the ticker symbol HFCK, closed the previous trading day at KES 4.13, reflecting a 19.3% gain year-to-date. With the current offering price, shares are being offered at a premium.
In a public notice, HF Group advised shareholders and the public to be cautious when dealing with the company’s shares, noting that the transaction could significantly impact the share price. Any further information will be disclosed following CMA approval.
Formerly known as Housing Finance Limited, HF Group operates in mortgage lending, corporate and retail banking, property development, and bancassurance.
