Kenya’s Capital Markets Authority (CMA) has approved TransCentury Plc to undertake a rights issue on the basis of five (5) new ordinary shares for every one (1) existing share after approval by the company’s shareholders. Transcentury plans to issue 2 billion new ordinary shares, in addition to the already issued 1.2 billion ordinary shares.
The listed firm says proceeds from the rights issue will be used to support its turnaround plan, reducing debt and unlocking working capital for its current businesses. TransCentury is involved in the manufacture of power cables, infrastructure projects, and engineering.
A rights issue is an offer given by a company to existing shareholders to buy a proportional number of additional shares at a given price, within a fixed period. Rights are often transferable and a shareholder may sell them on the open market.
TransCentury CEO Mr Nganga Njiinu said the firm recently launched a new strategic plan 2022-2025 and he is confident that the initiatives they have laid out that include refocussing on its core business.
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