Diamond Trust Bank Kenya Ltd. (DTKL), the country’s sixth-biggest lender by market value, headed for its largest gain in three months before a rights offer.
The stock jumped 5 percent to 94.5 shillings at 10:09 a.m. in Nairobi, the capital. A close at that level would mark the biggest advance since Dec. 15.
“It seems like someone is trying to enhance his position ahead of the rights issue,” George Bodo, an equity strategist at Nairobi-based Apex Africa Capital Ltd., said in a phone interview today.
DTB, as the bank is known, plans to sell 24.5 million shares on the basis of one-for-eight held, in a rights offer, it said March 1. The capital raised will finance the bank’s plans to explore opportunities to strengthen its presence in East Africa through its subsidiary banks and to invest in other markets in the region, Chairman Abdul Samji said.
The date and price of the offer will be determined once regulatory and shareholder approval has been received, Samji said.
Diamond Trust is an affiliate of the Aga Khan Fund for Economic Development SA, a Geneva-based holding company.
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