HF Group Plc has received the green light from the Capital Markets Authority (CMA) for a substantial Sh6 billion capital raise through a Rights Issue, a pivotal step in the Group’s ambitious transformation strategy.

The capital boost, approved through the Rights Issue, aims to strengthen HF Group’s position as a full-service banking institution, opening new doors for growth and diversification in the financial sector.

Set for listing on the Nairobi Securities Exchange (NSE), the Rights Issue offers shareholders the chance to secure a stake in this forward-looking vision.

Each share, priced at Sh4.00, will contribute directly to HF Group’s ongoing evolution into a robust financial services provider, a journey that has seen three consecutive years of profitability.

As part of the offer, shareholders will be entitled to acquire two new shares for every one existing share in their portfolio.

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With an additional “green shoe” option—a 30 percent allowance to release up to 384.6 million more shares should demand exceed projections—the Group is prepared to accommodate heightened investor interest.

HF Group’s CEO, Robert Kibaara, highlighted the strategic impact of the capital increase, stating, “This capital investment marks a pivotal milestone in HF Group’s transformation journey and reinforces our commitment to delivering long-term value to our stakeholders.”

In addition to expanding shareholder value, the initiative underscores HF Group’s commitment to reshaping its financial model to meet the industry's evolving needs.

Chairperson Olive Mugenda urged shareholders to embrace the opportunity, calling the Rights Issue a chance to actively participate in the Group’s future direction.

“As the Group embarks on this transformative journey, we remain dedicated to innovation, excellence, and delivering exceptional value to all our stakeholders,” she noted.

Investors interested in participating must register by 3 pm on Friday, the Record Date.

With substantial capital infusion on the horizon, HF Group is poised to leverage its financial momentum, building a solid foundation for sustainable growth and a lasting impact on the financial landscape.