The latest filings show that Uchumi attracted more billionaire investors ahead of the supermarket’s rights issue. Businessman Paul Ndung’u, for instance, in October bought 300,000 shares of Uchumi worth Sh2.7 million, equal to a 0.1 per cent stake.
However, there were others who could not wait to exit. Billionaire businessman Karim Jamal is one of these. He moved 2.3 million shares of Uchumi ahead of the retailer’s rights issue that has recorded a 183.5 per cent subscription rate. This is according to the latest regulatory filings by the company.
Despite the transaction, Mr Jamal remains a top shareholder in the retailer with a 4.4 per cent stake alongside Treasury whose equity stands at 13.4 per cent.
The shares, traded in the five months to October, are worth Sh21.5 million based on Uchumi’s prevailing share price of Sh9.3 on the Nairobi Securities Exchange (NSE).
The company, which sought to raise Sh895.8 million in the offer that opened last month, recorded a 64.3 per cent success rate under the original entitlement.
This means that the oversubscription rate of 83.59 per cent was driven by application for more shares by a section of the retailer’s investors, who will get a chance to raise their stake in the funds drive.
It is not clear whether Mr Jamal sold the shares or merely moved them to another holding vehicle.
Uchumi’s shareholding structure is expected to change significantly in the coming weeks after conclusion of the rights issue oversubscription driven by a section of shareholders seeking to boost their ownership in the retailer.
Billionaire Jamal has significant interests in a number of NSE-listed firms including power producer KenGen and Mumias Sugar Company. Besides his NSE portfolio, the businessman owns Starlit Insurance Brokers.
Uchumi said it will allocate to investors additional shares from the rights issue on a pro rata basis. The retailer had priced the rights at Sh9 each offered on the basis of three shares for every eight held.