Crown Paints, a major paint manufacturer in Kenya and the East African region is in the process of issuing new shares through a rights issue. The company plans to raise KSh 711,810,000 by issuing 71,181,000 new ordinary shares at a price of KSh10 per ordinary share.
Crown paints says that the funds will be used to lower its debt which has risen beyond sustainable levels. The manufacturer will also invest some of the funds in expansion projects in an attempt to grow its market share in the region.
Faida Investment Bank is the lead transaction adviser in the rights issue, while KCB will act as the receiving bank. Other companies involved in the rights issue are Anjarwalla and Khanna LLP, the legal advisor, and Ernst&Young LLP, the reporting accountant.
According to the listed company, the register closure date for the rights issue is on 31st May 2021 and shareholders on the register at the close of business on the said date will be entitled to the rights issue.
Investors eligible for the rights issue will be able to buy the shares starting from 10th June to 23rd June 2021. Crown Paints will announce the results of the rights issue on 14th July this year.