Listed company, Crown Paints, plans to raise KSh711,810,000 through a rights issue after obtaining the necessary approvals from the company’s board of directors, shareholders, and the Capital Markets Authority.
As part of the rights issue, Crown Paints will sell 71,181,000 new ordinary shares on the Nairobi Securities Exchange at an issue price of KSh10 each. According to a statement on the company’s website, the new shares will be issued based on one new ordinary share for every one existing share. The rights share price is a 74% discount to Wednesday’s closing price of KSh38.50.
The funds will be used to lower the company’s debt to sustainable levels and to assist the manufacturer to expand its network in the East African region.
In a public notice, the Capital Markets Authority CEO Mr. Wyckliffe Shamiah said that “the disclosures made on the rights issue comply with the requirements of the Fourth Schedule to the Capital Markets Regulations, 2002, and contain information that will enable investors to make an informed decision on the rights issue”.
On 30th April this year, Crown Paints announced that it would delay the release of its full-year financial results due to covid19 related challenges. The movement restrictions introduced in Kenya, Uganda and Rwanda contributed to the delay. The company said it will release the results on or before 15th June 2021.
Also read: Crown Paints Plc is the Top Price Gainer at NSE
