Sanlam Kenya PLC, a leading financial services provider listed on the Nairobi Securities Exchange (NSE), has announced a KES 2.5 billion rights issue as part of its broader capital restructuring strategy aimed at strengthening its balance sheet and supporting future growth.
The public announcement, dated April 3, 2025, outlines the timeline, underwriting arrangements, and regulatory approvals governing the rights issue, with trading expected to commence on June 4, 2025.
“Further to the meeting of the Directors held on 3 April 2025, the Company today announces that the Directors have approved the commencement of the Rights Issue in accordance with the Information Memorandum dated 3 April 2025 which is available on the Company’s website https://www.saniam.co.za/arevyaabout/pages/. “The company said in a statement.
Physical copies will be available from the offices of the Company. Absa Securities Limited (the Lead Sponsoring Broker), other Authorised Selling Agents appointed by the Company and at branches of Stanbic Bank Kenya Plc, the Recording Bank.”
The initiative follows shareholder and regulatory approvals and will see the company issue up to 500 million new ordinary shares at a par value of KES 5.00 each, with a rights price of KES 5.00 per share. Shareholders will be offered an entitlement ratio of 125 new shares for every 36 shares held on the record date.
According to the announcement, Sanlam Kenya resolved on November 13, 2024, to raise additional capital via the rights issue in order to strengthen its financial position and enhance long-term sustainability. The proceeds from the capital raise will allow the company to realign its operations with evolving market conditions and ensure its ability to meet customer and stakeholder obligations.
The Sanlam rights issue is being underwritten by Sanlam Allianz Africa Proprietary Limited, a limited liability company established in the Republic of South Africa. This arrangement is designed to ensure that any untaken rights by existing shareholders will be subscribed to by the underwriter, thereby guaranteeing the success of the rights issue.
Sanlam Kenya has provided a detailed schedule of critical dates associated with the rights issue. The last date for subscription and payment for any untaken rights by the underwriter is set for May 27, 2025. The announcement of rights issue results is expected on May 29, followed by the dispatch of share allocation statements and refunds on May 30.
The company will electronically credit the Central Depository System (CDS) accounts with the new shares on June 3. Trading in the new shares will commence on the Nairobi Securities Exchange on June 4, 2025.
The Sanlam rights issue remains subject to final approval from the Capital Markets Authority (CMA) and the Insurance Regulatory Authority (IRA). Sanlam Kenya has clarified that any change in the timeline or structure of the issue will be publicly announced, ensuring transparency and regulatory compliance.
The Sanlam Kenya rights issue follows the formal approval of the offer by Sanlam Kenya’s shareholders in December 2024. The company also secured regulatory endorsements from both the CMA and the IRA, two key oversight bodies in Kenya’s financial sector. According to the announcement, Sanlam Kenya has satisfied the corporate and regulatory conditions outlined in the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations of 2023.
Prospective investors are encouraged to review the information memorandum once it is published. This memorandum will be available both at the company’s registered office and online at www.sanlam.co.za/kenya/about/Pages.
Sanlam Allianz Africa Proprietary Limited (Company No. 2021/987585/07), a fully owned entity within the Sanlam Group, has entered into a formal underwriting agreement with Sanlam Kenya. This agreement provides assurance that any rights not taken up by shareholders will be subscribed for by the underwriter, providing the issuer with full access to the targeted KES 2.5 billion.
As Kenya’s financial services sector evolves, rights issues such as Sanlam’s will remain instrumental in helping companies realign their capital structures while preserving shareholder value.
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