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Rights Issues

17 Nov 16 Centum Investment Co. Ltd Unaudited Half Year Results 30 September 2016 ::read more

17 Nov 16 Williamson and Kapchorua Tea Ltd Unaudited Half Year Results 30 September 2016 ::read more

4 Nov 16 Safaricom Ltd Unaudited Half Year Results 30 September 2016 ::read more




Rights Issues

A rights issue is a way in which a company can sell new shares in order to raise capital. Shares are offered to existing shareholders in proportion to their current shareholding, respecting their pre-emption rights. The price at which the shares are offered is usually at a discount to the current share price, which gives investors an incentive to buy the new shares — if they do not, the value of their holding is diluted.
The rights are normally a tradeable security themselves.This allows shareholders who do not wish to purchase new shares to sell the rights to someone who does. Whoever holds a right can choose to buy a new share (exercise the right) by a certain date at a set price.
Some shareholders may choose to buy all the rights they are offered in the rights issue. This maintains their proportionate ownership in the expanded company, so that an x% stake before the rights issue remains an x% stake after it. Others may choose to sell their rights, diluting their stake and reducing the value of their holding.
If rights are not taken up the company may (and in practice does) sell them on behalf of the rights holder.

Standard Investment Bank has been involved in the following Rights Issues:




Transactions size(Kshs)


Diamond Trust Bank Ltd

Joint Lead Transaction Advisor

1.8 Billion


Standard Chartered Bank of Kenya 

Lead Sponsoring Stockbroker

3.2 Billion


Kenya Airways Limited

Leading Sponsoring Broker

20.68 Billion


Kencall EPZ Ltd

Transaction Advisor/Placement Agent



Transaction Advisor

253 Million

Dec - 2011

NBS Bank, Malawi

Joint Transaction Advisor



Standard Chartered Bank

Lead Sponsoring Stockbroker

2.5 Billion

Oct- 2010

TPS Eastern Africa

Joint Transaction Advisor/ Sponsoring Stockbroker

1.2 Billion

Aug- 2010

Kenya Commercial Bank

Joint Transaction Advisor, Lead Sponsoring


15 Billion

Jul - 2010

Kenya Commercial Bank

Lead Sponsoring

Stockbroker/Placement Agent

5 Billion


Housing Finance

Lead Sponsoring Stockbroker

2.2 Billion


CFC Bank

Sponsoring Stockbroker

600 Million






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