Cash-strapped Standard Media Group Seeks To Raise Ksh1.5B Via Rights Issue
The Capital Markets Authority (CMA) has granted approval to the Standard Group PLC for its proposed rights issue.
As part of this offering, the Company will issue a total of 283,661,120 new shares at Ksh5.29 per share, aiming to raise approximately Ksh1.5 billion.
The issuance is structured at a ratio of 11 new ordinary shares for every 3 ordinary shares held.
The Company intends to utilize the Ksh1.5 billion strategically to settle existing liabilities, secure working capital, and support both organic and inorganic growth. The funds will also drive its digital transformation efforts and strengthen its financial position.
“This approval marks a significant milestone in the Standard Group’s transformation journey. Over time, we have made substantial progress in streamlining operations, reducing costs, and implementing a robust strategic plan aimed at long-term financial resilience,” Standard Group PLC Board Chairman Dr Julius Kipngetich stated.
“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.”
The rights issue follows approval by the Company’s shareholders at the Annual General held on September 2, 2024.
