Centum underwrites KPLC Rights Share Issue
Centum is ramping up its activities geared at diversifying its business by including in its business underwriting of capital market transactions.
To set the ball rolling, the largest listed investment firm in East Africa has partnered with Equity Bank Limited to form the consortium that has underwritten 50 per cent of the value of the ongoing Kenya Power and Lighting Company (KPLC) rights share issue.
At Ksh 9.5 billion the KPLC transaction is billed as the second largest rights share issue in the history of East Africa.
In a statement signed by the Chief Executive Officer James Mworia, he explained that this was a novelty in its slightly over four decade history and a significant addition to its business model that would definitely increase its shareholder value.
“This transaction falls within the precincts of our Quoted Private Equity business line and is firmly in line with our corporate strategy to grow our business,” said Mworia adding that they had chosen to go with Equity Bank due its massive balance sheet strength and likeminded strategic acumen.
Between the two financial services companies, Equity and Centum together have a combined strong balance sheet totaling nearly Ksh. 150 billion shared as Ksh. 137 billion and Ksh. 11 billion respectively.
Mworia noted that the decision to underwrite the 244 million shares worth Ksh. 4.7 billion was a strong show of confidence in the KPLC business fundamentals and therefore a positive indicator that would definitely boost the level of investor confidence in the issue. The KPLC rights share issue is presently on sale for an offer price of Ksh. 19.50.
“The future of our capital markets is very bright and Centum is positioning itself as a strong underwriting partner for all transactions ranging from new shares listings, rights issues to corporate bonds,” explained Mworia. And added; “We trust that Centum will be associated with more of these kind of transactions in the future and believe that we will play a formidable role in all opportunities.