Enquiries:
Send all your enquiries about the Coop Bank IPO to:

IPO Centre
Tel. 020 4988000
Mobile: 0711 016000
Email: ipocentre@co-opbank.co.ke


The Co-operative Bank of Kenya Limited is currently the fourth largest bank in Kenya in terms of the asset base. The bank has undergone a successful strategic business and operational restructuring over the last 7 years that has resulted in continuously improved profitability. It is highly commendable that exactly ten years this month after the 7th August 1998 bomb blast that fully destroyed the bank's headquarters and subsequent declined performance with massive loss of over Kshs.2.3 Billion in year 2001, the Bank has been strategically repositioned and exceptionally grown to rank among the top banks in Kenya.

This has indeed been a full circle turnaround in our profitability from the loss of over Kshs2.3billion in the year 2001 to the profit before tax of Kshs2.32billion as at 31 December 2007; with a projected profit before tax of over Kshs3.2billion in 2008.

For the last seven years the bank has continued to grow business and notably expand its branch network country wide to over 52 branches, with 8 having opened in the last 6 months (Naivasha, Wakulima, Ukunda, Mtwapa, Eastleigh and Kayole) and with 20 more expected to open before the end of the year that include;

Buru Buru, Westlands, Ongata Rongai, Tom Mboya, Upper Hill, River Road, Embakasi, Zimmerman, 2nd Industrial Area Branch, Kuscco, Kangemi, Nkubu, 2nd Nakuru branch, Isiolo, Kapsabet, Voi, Nanyuki, Narok, Siakago, Malindi, Juja, Garissa, Mariakani – Coast, Busia, Gilgil, Kitui, Siaya and Tala,. The bank's ATM network has also expanded to 152 and over 20 more expected before the year end. This has ensured continued growth in the bank's retail customer base reaching many Kenyans previously un-banked.
The strategic repositioning has indeed been one of sheer Faith and Determination with an impressive performance over the years as hereunder;

To sustain this phenomenal growth, the Bank's shareholders at a special General Meeting on 27th June 2008 approved plans to raise additional capital through an offer for subscription of shares to the public through the Nairobi Stock Exchange (NSE); It is projected that the Initial Public offer will be the second largest in Kenya and will raise at least Kshs10 billion. Listing of the shares will notably unlock value for the shareholders and provide a pricing and transfer mechanism.

We are pleased to update you that the following key milestones have already been achieved towards obtaining the required Capital Markets Authority (CMA) approvals;

1) As per shareholders approval on 27th June 2008, changed the legal status of the Bank from a Co-operative Society to a Limited liability company in order to satisfy Capital Markets Authority regulations for listed companies; this is vide Gazette Notice No.7089 dated 8th August 2008 wherein the Minister of Finance has approved, through Central Bank of Kenya our regulator, the transfer of the business, assets and liabilities of 'The Co-operative Bank of Kenya Limited' registered as a co-operative society to 'The Co-operative Bank of Kenya Limited' registered as a limited liability company.

2) The governance structure approved by the shareholders of the new bank on 27th June 2008 is now as hereunder;

* Coopholding Cooperative Society Ltd with the above structure now holds the entire shareholding previously held by the 3,805 co-operative societies countrywide (formerly class 'A' shareholders), and is hence the strategic investor and majority shareholder in the Bank; The structure as approved will ensure the bank will retain its strategic identity as a 'Co-operative Bank' serving the over 7 Million member co-operative movement in Kenya.
** The over 51,000 individual (formerly class 'B') shareholders have been allocated a similar number of shares in the new bank.

Under the proposed IPO the bank will issue new shares to the general public through the Nairobi Stock Exchange subsequent to which, all the shares will have as per CMA rules equal voting rights.
After the additional shares to be issued under the IPO; it is projected that the shareholding could be as hereunder;

3) Having obtained the necessary shareholder/statutory approvals to restructure the bank as aforementioned, the bank has embarked on the recruitment of the various key consultants who will facilitate preparation of the various requirements for the necessary approval by the CMA. In this regard, the bank has sent Requests For Proposals (RFP's) for the purpose of selecting the Lead Transaction Advisors and Sponsoring Brokers, among other service providers; we expect to appoint these by this Friday.

The appointed Transaction Advisors will particularly advice on the offer price of the share and the other listing requirements.

4) Currently the bank is owned 100% by the Kenyan people and is keen to ensure that the shares on offer under the IPO will principally benefit the Kenyan people. To enable the ordinary Kenyans share in this vision and the success of this Kenyan institution, the Board has approved that there be an allocation criteria, subject to CMA approval, that will ensure that ordinary Kenyans are the major beneficiaries of the share offer, with a minimum guaranteed allocation.

5) The projected Kshs.10 Billion additional capital from the IPO is projected to finance further growth and expansion, new product lines particularly mortgage finance, further investment in ICT that will further enhance the competitiveness of the Bank and overall profitability and return to the shareholders.
6) The projected timetable for the IPO is as hereunder;