Diamond Trust: Fourth Rights

Diamond Trust Bank is back for a fourth rights issues in recent years from its 11,136 shareholders at a rate of (Kshs 165) $1.95 per share, with each of shareholder entitled to buy 1 share for every 10 held. This follows others done in 2006, 2007,  2012  and now this one.

Contrasting the four issues 

Year - Nov-06 ; Nov-07 ;  Jul-12 : Jul-14

Target (Kshs M) – 735 ; 1,600 ; 1,809 : 3,631

New shares (M) - 15.5 ; 23.3 ; 24.4 : 22.0

Price (Kshs)  - 50 ; 70 ; 74 ; 165

Ratio  -  1:8 ; 1;6 ; 1;8 : 1:10

Budget (Kshs M) 41.6 ;  54.7 ; 57.6: 100.1

• The IFC remains as a principal funder and shareholder for the bank.
• Diversification has paid off with the bank having 30% of assets and 19% of profits from outside Kenya. While 77% of Diamond Trust's $61 million after-tax profit is from Kenya, the Tanzania and Uganda operations contributed about $7 million each of profit with Burundi trailing at ~$150,000 
• They have extended traditional banking services in the mobile and card age by having M-Pesa at all their ATM machines. They also issues prepaid cards  for NationHela, NakumattGlobal and MiCard and handle remittances/money transfer for WesternUnion, MoneyGram and XpressMoney
• Others institutions that may need to have rights issues or raise capital this year include ABC, Commercial Bank of Africa, Consolidated and Equatorial banks.