Shares in Finbond plunge 10% despite it raising dividend 36%
Finbond’s share price fell as much as 10% on Wednesday despite the short-term money lender raising its dividend by 36% for the year to end-February. The dividend amounted to 9.91c per share Subsequent to the reporting period, Finbond raised nearly R400m in a rights issue underwritten by Riskowitz Value Fund and Net 1 Finance. Riskowitz is the same financier that gained control of Taste Holdings by underwriting a rights issue, and then proceeded to replace the management of the Southern African franchise owner of Starbucks and Domino’s. Taste is scheduled to release its results on Thursday. Finbond’s results statement said Riskowitz and Net 1 elected to use the rights offer to convert debt into equity. The JSE-listed mutual bank, which has aggressively expanded into the US via acquisitions, reported its headline earnings per share (HEPS) grew 81.2% to 33.7c in its 2018 financial year. The group, which said it still has a 30% market share of all two-and three month loans in SA, report...
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