NCBA Group, an amalgamation of NIC Group and Commercial Bank of Africa, yesterday listed 793.8 million new shares at the Nairobi bourse, further cementing the merger.
The newly entity officially began operating as one on October 1, after Central Bank of Kenya gave the green light on September 27.
Given NIC Group initially had 703.9 million ordinary shares of Sh5 each, the additional shares will bring the sum total of issued shares to 1.49 billion at a per value of Sh7.45 billion.
Yesterday, NCBA shares closed at Sh35 this is a 54.18 per cent jump from NIC’s Sh22.7 before the merger was announced.
“NCBA shareholders will be able to derive more value from their investment as the bank is set to enjoy several benefits,"NCBA Group Chairman James Ndegwa said during the bell ringing ceremony.
He said these include leveraging on the strengths of a large financial institution to explore growth opportunities, economies of scale, financial and operational efficiency, business diversification and synergies among other benefits,”
As Sterling Capital report released in April shows the target share price for the merged entity is expected to peak to Sh52.60 after valuation on market price and book value.
“There is great value in investing in NIC Bank ahead of the merger given synergies that will culminate from the merged entity backed by the track record of management of both the companies, the potential, scalability, and the companies’ financial capabilities," the report stated.
In the beginning of the month KCB Group Plc listed an additional 142,979,717 shares at the NSE following the successful acquisition of the National Bank of Kenya (NBK).
This makes KCB the largest bank in terms of market capitalisation with an offering of 3.2 billion valued at Sh41.8 per share as at close of trading on Tuesday.
NCBA group managing director John Gachora said the lender is currently working to ensure all systems are harmonised by November 1 to offer customers seamless services across the country.
Speaking at the event the Chairman of the Nairobi Securities Exchange Mr. Sam Kimani congratulated NCBA for the successful merger and the listing of additional shares.
“Investors will always support a company whose values are embedded on the future of Kenya and I can say these two Kenyan entities have come together to form a strong financial services institution in the country with tentacles in the region,” he said.
The newly merged bank said it will focus on asset finance and retail banking, leveraging on the strengths of the two lenders and run as the country's third-largest bank.
