This archive report was first published on 22 October 2019.
On October 22, 2019, NCBA Group PLC marked a significant milestone in its journey by listing an additional 793.8 million shares on the Nairobi Securities Exchange (NSE), effectively sealing the NIC-CBA merger deal.
These additional shares belong to CBA shareholders who will now own shares in NCBA, a merged entity that began operating earlier this month following approval from the Central Bank of Kenya and the National Treasury on September 27, 2019.
NCBA Group Chairman James Ndegwa noted that the listing of the new shares is part of the bank's journey towards building a strong institution in which Kenyans and other investors can be a part of.
"We are grateful to our investors who gave us the nod to get to where we are today, effectively creating the third-largest financial institution in the country. NCBA maybe three weeks old but together we bring over one hundred years of banking experience," Ndegwa said during the bell ringing ceremony to kick off the trading of the new shares.
Analysts, however, hold a cautious view on the share price movement of the newly formed company, with Gerald Muriuki, an analyst at Genghis Capital Limited, stating, "I do not see significant movement in the share price given that both firms were more or less equal in size. I would pay more attention in the successful integration of the two entities."
When markets closed on Friday last week, NIC Group PLC shares were trading at Sh 31.95 compared to the previous price of Sh 29.15, a 9.61 percent increase in the share price.
