The Capital Markets Authority (CMA) has given the green light for Standard Group PLC’s proposed rights issue, clearing the path for the company to raise billions in support of its strategic expansion.
The rights issue, which was approved by shareholders during the group’s annual general meeting on 2 September 2024, aims to raise Sh1.5 billion through the issuance of 283.66 million new shares priced at Sh5.29 each. Shareholders will be offered 11 new ordinary shares for every 3 shares they currently hold, presenting an opportunity to bolster their investment while supporting the company’s ambitious growth plans.
This injection of fresh capital will go towards settling outstanding liabilities, securing working capital, and fuelling both organic and inorganic expansion. A key focus will be accelerating the company’s digital transformation, ensuring it remains competitive in an industry increasingly shaped by technological advancements. This move showcases the group’s commitment to fortifying its financial health while embracing innovation to meet the demands of a dynamic media environment.
According to Dr Julius Kipngetich, Chairman of The Standard Group PLC board, the approval by CMA marks a transformative milestone for the group in its journey towards sustainable growth and resilience.
“Over time, we have made substantial progress in streamlining operations, reducing costs, and implementing a robust strategic plan aimed at long-term financial resilience.
The approval of this rights issue provides the vital capital injection needed to accelerate our digital-first strategy and push toward positive financial results within the next 12 months.
We are grateful for the continued trust and support of our shareholders and stakeholders, and with this approval, we remain confident that the Standard Group is positioned to become a leading force in the ever-evolving media landscape,” he said.
