Kingdom Financial Holdings Limited (KFHL) $4, 5 million rights issue was 55, 6 percent subscribed, raising $2.5 million.

The group said both institutional and individual investors supported the rights issue.

“The funds raised will be used to recapitalise Kingdom Bank Limited, which has been given a special dispensation by the Reserve Bank of Zimbabwe to comply with minimum capital requirements by February 2012,” the group said,

In September, Kingdom shareholders approved the company’s $25 million capital raising plan.

Out of the $25 million, the group proposed to raise $4, 5 million through issue of 148 026 316 ordinary shares for subscription to existing shareholders through the rights offer.

Another $7, 5 million will be raised through the issue of 246 710 526 ordinary shares to existing shareholders and prospective investors through a private placement while $3 million would be raised through issue and allotment of 98 684 211 ordinary shares by way of a public offering during the listing of the company on the Zimbabwe Stock Exchange.

The company would raise a further $10 million through the issue of redeemable convertible preference shares to prospective investors.