Uchumi raises 896 mln shillings for expansion
17 December 2014, 08:30
Nairobi - Uchumi Supermarkets has raised 895.8 million shillings ($9.89 million) in an oversubscribed rights issue to expand its operations in the east African region.
The retail chain, which also operates in Tanzania, Uganda and Rwanda, received bids worth 1.64 billion shillings for the 99.5 million shares on sale at 9 shillings a piece, it said in a statement. The sale being 84 percent oversubscribed.
Jonathan Ciano, Uchumi's chief executive officer, said the retailer would open more branches in a region where economic growth has averaged about 5 percent in recent years resulting in a growing number of middle class consumers with money to spare.
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"We also want to be able to adequately finance working capital for our subsidiaries with a consequent growth in market share and sales volumes," Ciano said.
The new shares will be listed and start trading on the Nairobi Securities Exchange on January 7, Uchumi said.
The retail firm reported a 7 percent drop in pretax profit for the year ended June to 452.7 million shillings.
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