Mortgage lender Housing Finance (HF) Group has received regulatory approval from the Capital Markets Authority (CMA) to raise up to KES6 billion through a rights issue at the Nairobi Securities Exchange.

In the cash call, HF Group will be offering up to 1.5 billion new ordinary shares at a price of KES4 per unit.

HF Group said the offer price represents a 4.44 percent discount to the six-month volume weighted average as at 30th September 2024.

In addition, a green shoe option of up to 30 percent, which is equivalent to 384 million shares, has been approved to cater for potential oversubscriptions in the funding call.

Read also: Dip in Q1 cement use mirrors fall in housing plan approvals

The rights sssue 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.

“The Group is raising capital as part of its strategy to increase its investment in HFC Limited’s expanded business segments and to shore up its capital base to ensure it is sufficiently capitalised. The capital injection will also allow the Group to continue to implement its growth strategy through its investments in growing business segments and enhancing its digital proposition,” reads part of the notice.

Britam Group, HF Group’s major shareholder, has confirmed that it will be taking up its full rights, as the lender continues to enjoy its third year of strong growth.

The new ordinary shares will be listed on the NSE and the offer will open on Tuesday, November, 12th, 2024, and close on Monday, December 9, this year.

[email protected]