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Unit Trusts
Discretionary Accounts
Initial Public Offers(IPOs)
Private Placements
Mergers & Acquisitions
Debt Restructuring & Financing
Cross Listings
Rights Issues
ESOPs
Privatizations
 

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:

  

Issuer/Client

Role

Transactions size(Kshs)

Closed

Diamond Trust Bank Ltd



Joint Lead Transaction Advisor

1.8 Billion

Ongoing

Standard Chartered Bank of Kenya 


Lead Sponsoring Stockbroker

3.2 Billion

Ongoing

Kenya Airways Limited


Leading Sponsoring Broker

20.68 Billion

Jun-2012

Kencall EPZ Ltd


Transaction Advisor/Placement Agent

N/A


KSPS Ltd


Transaction Advisor

253 Million

Dec - 2011

NBS Bank, Malawi

Joint Transaction Advisor

N/A

2010

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

Stockbroker/Placement

15 Billion

Jul - 2010

Kenya Commercial Bank

Lead Sponsoring

Stockbroker/Placement Agent

5 Billion

 2008

Housing Finance

Lead Sponsoring Stockbroker

2.2 Billion

Jul-2008

CFC Bank

Sponsoring Stockbroker

600 Million

Dec-2005

 

 

 

 



               
  
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