HF Group Celebrates Oversubscribed Rights Issue, Boosting Investor Confidence

HF Group Plc (NSE: HFCK), a listed local financial solutions provider, celebrated the successful conclusion of its Rights Issue with a Bell Ringing Ceremony held at the Nairobi Securities Exchange (NSE). The event, attended by senior representatives from HF Group, the NSE, the Capital Markets Authority, and other key stakeholders, marked the oversubscription of the Rights Issue by 38.32%.

The Rights Issue aimed to raise KES 4.6 billion but received applications totaling KES 6.38 billion, reflecting strong investor confidence. Commenting on the achievement, HF Group CEO Robert Kibaara stated, “This significant capital raise is a cornerstone of HF Group’s five-year strategy. Eighty-five percent of these funds will be invested in scaling up the profitable business we have created, while 15 percent will go towards technology and digitization to enhance efficiency and customer experience.”

Priced at KES 4.00 per share, the Rights Issue offered shareholders two new ordinary shares for every existing share held, with the option to apply for additional shares. It also included a green shoe option of up to 30%, equivalent to 384,614,168 shares, to accommodate potential oversubscriptions. The total number of new shares applied for reached 1.6 billion, with a gross value of KES 6.38 billion.

Frank Mwiti, CEO of the Nairobi Securities Exchange, commended HF Group’s bold approach, saying, “HF Group’s decision to pursue a rights issue underscores its confidence in the NSE and the robustness of Kenya’s capital markets. This move not only strengthens HF Group’s financial position but also highlights the NSE as a reliable platform for raising capital, even in challenging economic times.”

The successful capital injection positions HF Group’s banking subsidiary, HFC, ahead of regulatory capital adequacy requirements. Currently sitting at KES 8 billion in capital, the bank is on track to meet the 2028 regulatory target of a KES 10 billion capital base.

Since the Rights Issue, HF Group shares have appreciated significantly, currently trading at an average price of KES 9—over 100% above the rights price of KES 4. This sharp increase signals strong investor confidence in the Group’s growth potential and ability to deliver returns.

The ceremony marks a pivotal moment in HF Group’s journey, setting the stage for future growth and enhanced service delivery in Kenya’s financial sector.