In 2006 Family Finance Building Society in a bid to share its profits with members and convert to a bank held a private placement and floated 15,000,000 @ 60.00 per share.
In May 2007, the shares were taken over by Family Bank Limited and thus Family Finance ceased to operate.
The Over the Counter trading was introduced and the price rallied to 70.00 per share forcing the share to be split in 2009 by 2 ½ times. This meant that a shareholder who had purchase 1,000 shares at 60.00 for a value of Kes. 60,000.00 now had 2,500 shares at a price of 28.00 per share, an appreciation of 17%.
A rights issue was also offered in 2009 to help shore up the banks share capital and finance branch expansion which had grown to 50 branches. 2 new shares were offered for every 5 shares held at a price of 22.00 per share which represented a discount of 27% per share. 2,464 shareholders took up 7.9 million shares after which a private placement was offered to a 100 new shareholders who took up 61 million shares to fully subscribe the issue.
The share price continued on its upward trajectory and in 2012 was trading at 38.00 per share on OTC a reflection of the growth in the company. To support this growth, shareholders approved another rights issue at a price of 31.00 per share; a 22.00 % discount on the prevailing price by then. This was to increase the banks financial strength necessary to increase its market share and range of products as it rolled out the revamped universal banking model while maintaining optimal service levels and complying at all times with regulatory requirements.
A bonus of 1:1 was declared and approved by shareholders at the Annual General Meeting which translated to each shareholders shares being doubled as at the books closure date of 3rd may 2013.
A shareholder who purchased 1,000 shares in 2006 at a total price of 60,000 and took up the allotted rights issues shares in 2009 and 2012, now had a total of 8,166 shares after being allotted 4,083 free shares. This translates to 408,300 at a price of 50.00 per share from an initial investment of Kes. 60,000.00
The share continues to be traded on OTC between existing shareholders as it’s a closed market.