Few months after liquidating its Kenyan operations,ATLAS Ltd which is cross-listed in London Stock exchange & the Nairobi Stock Exchange has announced its intention to raise approximately Ksh 505 Million( $5 million) through issue of new Ordinary Shares by way of a Placing at a Placing Price of 0.325 pence (KES 0.48) per Ordinary Share.
The net proceeds of the Placing will be used to fund a full feasibility study on the Chancho Project,its new acquisition in Addisa-baba,Ethiopia as well as initial construction works. The detailed use of proceeds is as per below.
- Approximately $1.5 million for breaking the ground and construction of ancillary buildings
- Approximately $1.5 million required for deposits on long lead items
- Approximately $1.0 million required for site preparation/water drilling
- Approximately $1.0 million for services of engineering consultants and performance of feasibility studies
ADSS also proposes to change its name to Atlas African Industries Limited to reflect its shift to manufacturing.
Yesterday at NSE Kenya,the market reacted negatively after the news and the share price shed 7.89%.
Atlas listed in December 2014 at a price of KES 11.50. Atlas is one of the companies on the NSE which has taken a biggest hit in the last one year.Its share price has lost 94.90% over the past one year to the current Sh 1.7
Related; Atlas Development Public Announcement on liquidation of its subsidiaries
