KINGDOM Financial Holdings Ltd (KFHL) founding shareholders are expected to increase their stake in the group when its four-for-one rights issue to raise $100 billion opens on Monday, February 21
The offer will close at noon on March 11.
The major shareholders, including founding shareholders and some pension funds, are sub-underwriters. The team includes Meikles Africa.
KFHL founder, Nigel Chanakira, is expected to increase his shareholding above the 20% he holds after buying out some of his founding partners early this year.
Although sub-underwriting arrangements are still to be finalised, authoritative sources revealed to businessdigest that the founding shareholders and some pension funds had been jostling to underwrite the 48% shares not yet committed. The 48% stake makes up 38% of the group’s issued share capital.
Meikles Africa Ltd, which currently holds 25%, is underwriting the other 52%.
Chanakira indicated last month that he was now the largest single shareholder of the financial services group after the acquisition of the 20% stake. He said: “I can confirm that I am now the largest single shareholder in the Kingdom group.”
Approximately 1,4 billion rights issue shares are on offer to existing holders of ordinary shares in the issued share capital of KFHL, at a subscription price of $70 on the basis of four new rights offer shares for every one Kingdom share held at the record date (February 18).
This will raise the financial group’s number of ordinary shares in issue to about 1,8 billion from about 360 million, out of a total of 3 billion authorised shares.
KFHL expects to raise gross proceeds of $100 billion of which $96,3 billion will go towards expansion of current operations and the remainder will meet rights offer expenses.
The group said it is engaging in a capital raising project which is likely to usher in new institutional shareholders.