Recovery Strategy Detailed by Standard Group Following Approval of Sh1.5b Fundraising Effort
**Standard Group Plc Announces Rights Issue to Strengthen Balance Sheet and Navigate Digital Growth**
In a significant move towards recovery and growth, the Standard Group Plc has received approval from the Capital Markets Authority (CMA) for a rights issue aimed at raising Sh1.5 billion from its shareholders. The announcement was made on June 25, 2025, following a thorough review of the documentation and information memorandum submitted by the company.
The funds raised through the rights issue will be utilised to strengthen the company’s balance sheet and enable it to capitalise on digital growth opportunities as part of an ongoing reorganization. The rights issue is an invitation to existing shareholders to purchase additional shares at a discount to the prevailing market price, allowing the company to raise capital without resorting to expensive debt options.
The Standard Investment Bank is handling the rights issue as the lead advisor. The CMA's approval sets the stage for the process to proceed, although the exact subscription period and final dates have not been explicitly stated. However, it is expected that the rights issue will open for trading on July 12, 2025, with the CMA granting an exception to open the issue for 60 days.
In addition to the rights issue, the Standard Group is also focusing on aggressive revenue collection strategies to recover nearly a billion shillings owed by government institutions and the private sector. The company's Chief Financial Officer, Kiplagat Kiprotich, announced these details during the company's 107th Annual General Meeting.
The Standard Group, a media company with over 120 years of existence, is also investing in accelerated digital transformation. The company's Chief Executive Officer, Marion-Gathoga Mwangi, noted that digital disruption is ongoing, and the company has started to employ mitigation strategies, including cost rationalisation and transformation initiatives.
One of the key initiatives is the development of a video-on-demand (VOD) platform in collaboration with partners from South Africa, and the revamping of its content online to offer premium content for premium advertising.
The Standard Group, which includes Kenya's oldest newspaper, The Standard, The Nairobian, Standard Digital, Standard Courier Services, Spice FM, Radio Maisha, Berur FM, and KTN, has been affected by depressed ad spend by big advertisers and the government, as well as digital and supply chain disruptions.
However, the company is now poised for growth, with a focus on navigating the digital revolution. Mr Mwita, the company's Chief Executive Editor, highlighted the progress of the company's efforts to overcome financial challenges, such as reducing administrative costs.
Ms Mwangi also acknowledged public debt as a significant issue for the company, with over Sh10.6 trillion owed in public debt in the country. The company aims to recover a significant portion of this debt through increased debt collection.
The Standard Group's 2024 financial statements reported a loss of Sh1.1 billion compared to Sh722 million in 2023, with revenue standing at Sh1.8 billion, down from Sh2.3 billion in 2023. The company is, however, optimistic about its future, with the rights issue, cost intervention measures, and new revenue streams forming a key part of its recovery plan.
- Amidst the digital growth and ongoing reorganization, the Standard Group Plc plans to utilize funds from the rights issue to strengthen its balance sheet, allowing it to capitalize on these opportunities more effectively.
- In addition to the rights issue, the Standard Group is employing aggressive revenue collection strategies to recover outstanding debts from government institutions and the private sector, as announced during the company's Annual General Meeting.
- The Standard Group is also investing in digital transformation, with initiatives such as developing a video-on-demand (VOD) platform and revamping content online to offer premium content for premium advertising, aiming to navigate the digital revolution and attract more advertising revenue.
