Tuesday, April 17, 2007

HFCK rights issue

Housing Finance shareholders are expected to raise the Bank's share capital from 575 million to 1.18 billion shillings ($16.8 million) by creation of 120.75 million new shares or one new share for each existing share held. About 5% of the shares are reserved for the company's employees leaving 115 million shares to be added to the company's listing on the NSE.

HFCK and S&L (owned by KCB) are still a major player in the mortgages sector which is becoming a crowded field with new entrants Stanbic, Standard Chartered, and next to be joined by cash rich Equity Bank.


MainaT said...

Bankelele-do you know which banks service the commercial mortgage market?

Dollar Man said...

Banks, Thanx for the info on HFCK. What is the likely effect of the rise of the share capital thro' creation of the new shares on the current share price of Kshs. 25.50? I bought a substantial amount @ Kshs. 48 in January and has been disappoited ever since. Is it worth holding any more?

bankelele said...

MainaT: Reatil are offered by S&L, HFCK, Stanbic, Standrd Chartered. For development's I'd say try a large commercial or development bank

Dollar Man: can't advise on what to do, but I expect the rights to be priced at a discount or near the current price.


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