Newly listed Kenyan lender I&M plans to raise more cash for M&A


NAIROBI, June 25 |
Tue Jun 25, 2013 8:29am EDT

NAIROBI, June 25 (Reuters) – Kenya’s IM Bank plans to raise
more cash to fund its expansion strategy, its executive director
said on Tuesday, after the firm listed its shares on the Nairobi
bourse.

The bank, which has one of the best return on capital rates
in the sector in Kenya at 25 percent, would open for business in
Uganda this year, building on its presence in Rwanda and
Mauritius, he said, and would raise extra capital to expand.

“As we look at other territories, maybe we can look at
acquisitions or mergers in Kenya or in the region, because now
we have access to the capital markets,” said Executive Director
Sarit Raja-Shah, without saying which market IM might tap.

He said barring suitable acquisitions the bank would apply
for its own banking licences in neighbouring markets.

The lender listed its existing 32 million shares at 90
shillings ($1.04) and the stock rose to 102 shillings.

IM’s assets as stated in the listing prospectus were worth
145 billion shillings.
($1 = 86.1500 Kenyan shillings)

(Editing by Louise Ireland and Edmund Blair)