The Co-operative Bank of Kenya is seeking to raise its current authorized shares by 2.5 billion.
This will see the listed lender increase its current portfolio from 5 billion shares to 7.5 billion shares. The move is meant to raise additional capital as well as cater for its upcoming bonus share issue.
The top-tier lender currently has 4.89 billion issued shares meaning the unissued balance of authorized stock — at just 110.6 million shares — is insufficient to cover the bonus issue.
Co-op’s shareholders will get a bonus of one share for every five held. This will see the bank allocate 977 new shares.
Nonetheless, the bank is not planning to have a rights issue anytime soon as it has sufficient capital base.
In the 2016 financial year, Co-op Bank was among the most profitable banks in Kenya. It posted an 8.2 per cent net profit growth to Sh. 12.6 billion. Its total interest income grew  by 14.8 per cent to Sh. 42.2 billion.
The growth saw the bank rise to the second best bank position in the country in the annual bank ranking report produced by Cytonn Investments.
