NIC Bank Ltd., a Kenyan lender, climbed to the highest level in more than 15 months after announcing the cut-off date for a bonus share offer.
The stock advanced 1.3 percent to 38.50 shillings by the close in Nairobi, the strongest since July 2011, according to data compiled by Bloomberg.
“The notice of the bonus issue had an impact on the share price,” Moses Waireri, a research analyst at Nairobi-based Genghis Capital Ltd., said in a phone interview. “The only way for this company is up because investors have a lot of confidence in the management as demonstrated by the level of oversubscription of its rights issue.”
NIC will issue one free share for every 10 held to investors in its shareholders’ register by the close of business on Nov. 22, it said yesterday.