Uchumi Supermarkets has lined up at least nine new outlets for 2015 in a brick and mortar growth plan to be partly financed by proceeds from the recent rights issue.
The retail chain has a footprint in Kenya, Uganda and Tanzania and is cross-listed on the stock exchanges of the three countries as well as Rwanda.
Uchumi will open new branches in Ukunda, Limuru and Naivasha by April, and another one on Kiambu Road in the course of the year in an upcoming mall dubbed Ciata City, in which it will be the anchor tenant.
It will also open its first branch in Rwanda, another in Uganda and three more in Tanzania. The retailer said this is aimed at giving value to its shareholders, from whom it has raised about Sh900 million through a cash call.
“Uchumi is growing bigger and we expect that the new branches will give value to all our stakeholders,” chief executive Jonathan Ciano said yesterday during a tour of the upcoming Uchumi Ciata City.
Ciano said shareholders have remained loyal to the firm, evidenced by over-subscription of the recent rights issue that received bids worth Sh1.64 billion against a target of Sh895.8 million between November 10 and 27. Investors were offered three new shares for every eight shares held, for Sh9 a piece.
The government, which owns 35.58 million shares or a 13.8 per cent stake, took up its allocation on November 12, pumping in Sh264 million.
“The new shares have started trading and have gained Sh1.5 each. The money we received is to be used as working capital,” Ciano said, assuring that customers should expect to get all commodities in the shelves “as all branches are fully stocked”.
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