Family Bank has set June 23 as its listing date on the Nairobi Securities Exchange (NSE) after receiving the Capital Market Authority's (CMA) approval.
The mid-sized lender will be listing 1.66 billion shares currently owned by 6,345 shareholders by way of introduction, indicating it will not be raising additional capital during the process.
Listing by introduction will provide liquidity for existing shareholders and bring onboard other investors who would otherwise not invest in the stock which has been trading over-the-counter (OTC) market since 2006.
Standard Investment Bank has been appointed as the lead transaction advisor, with PricewaterhouseCoopers (PwC) as the reporting accountants and Mboya Wangong’u & Waiyaki Advocates as legal advisors.
“Family Bank has received formal approval from the CMA to list on the NSE by way of introduction,” said the bank's Managing Director Nancy Njau.
“With the approval, the bank will list on the NSE on June 23, further reaffirming its commitment to deliver sustainable growth and marks the next step in the bank’s growth trajectory and long-term value creation journey,” she added.
The bank's listing will be the second this year following Kenya Pipeline Company’s initial public offering in March. Its listing will push the number of listed banks to 12, thus enhancing the sector's influence on the bourse.
Analysts expect that the listing of the bank will also serve to reduce the ownership of the founder, Titus Muya and his associates, which remained above the 30 percent mark.
“The founding family’s 31.9 percent shareholding is viewed unfavourably. The bank is actively working to further dilute the founding family’s shareholding to comply with regulatory expectations,” reads a recent credit rating report issued by South African rating agency, GCR Ratings.
Last year the bank raised Sh8 billion through a private placement, which had targeted Sh6.1 billion, being oversubscribed by 31.4 percent.
Mr Muya sat out the capital raising resulting in his direct stake of 5.6 percent being diluted to 4.4 percent. Daykio Plantations, a real estate company owned by Mr Muya, saw its shareholding shrink to 9.53 percent from 12.1 percent.
The Estate of the late Rachael Njeri, associated also with the Muya family, had its stake drop to ten percent from 12.8 percent.
Persons associated with him such as Brian Muyah, Ann Muya, Mark Keriri and Sheila Kahaki Muya fell off the list of top ten meaning their stake of 2.6 percent shareholding each had fallen below 2.07 percent.
Mr Keriri, the vice-chairman of the bank, was disclosed to have a 2.01 percent stake.
Kenya Tea Development Agency Holding limited, the largest single shareholder, increased its stake to 18.9 percent having participated in the capital raising.
