HF Group, a prominent mortgage financier, has announced its plans to issue 19.2 million shares under its employee share ownership plan (Esop) to reward its employees. The proposal is set to be considered at the company’s annual general meeting on May 26th, and if approved, it will raise the total issued share capital of the company from 384.6 million to 403.8 million.
According to the annual general meeting notice, the directors will be generally authorized to allot new ordinary shares of Sh5 each, not exceeding five percent of the total issued share capital of the company, to the Employee Share Ownership Plan (ESOP) for such consideration and upon such terms and conditions as the directors may determine. The shares will be issued at a discounted price to reward the employees and encourage participation in the Esop scheme.
HF Group has been issuing shares to qualifying employees at a price of Sh10 each in the past, with a transaction recorded in 2019 when the mortgage financier issued 120,000 shares under the Esop. However, the company’s share price has been below Sh10 since the beginning of 2020, as per market data. The stock closed at Sh3.91 on Wednesday, representing a 5.1 percent increase from Tuesday’s Sh3.72.
The Esop scheme is open to staff members who have completed their probation and have been confirmed as employees. The eligible staff members are required to pay for the units in cash at a price determined by the firm in full or in instalments until the price is paid in full. Additionally, the unit holder is not allowed to sell, transfer, or dispose of the units registered in their name to another unit holder or any third party whatsoever.