The mortgage financier has launched a rights issue that is expected to raise Kshs2.3Billion. The rights are on a one to one ration meaning that an investor will be entitled to one share for every one share held.
In a rights issue, existing share holders have the right to buy a specific number of shares from the company at a price lower than the current market price of the company.
Housing Finance is expected to raise 115 new ordinary shares at a price of Kshs20 per share. The recapitalization will to increase the company’s lending volumes by up to four times.
Last year, Equity Bank and British American Insurance increased the Bank’s capital after buying out 24.9% stake in the firm.
Although its deposit and lending have risen to levels above Kshs25Billion and Kshs30Billion respectively, the growth has not been within the company’s expectations.
Housing Finance was established in 1965 with the aim of helping post independence Kenyan’s own houses.
| 