By Mario Andree
The rights Issue of ACME Printing and Packaging PLC ends today. The company expects to raise Rs. 250 million with a new issue of 12.1 million shares to the market.
With the new shares, 40 percent of the company’s equity capital will be held by the public.
The current share price per unit stands at approximately Rs. 25 and is expected to grow with more movement created.
Dinal Peiris, Chairman, ACME Printing and Packaging said, "The Rs. 250 million will be utilized for settlement of debt, which will give the company a new start."
The company’s performance for the last few years was unsatisfactory showing marginal levels of profit growths,
The company has Rs. 160 million in long term debts, while the short term debts are around Rs. 450 million, he said.
The total turnover of the company is Rs. 1.1 billion, with a 340 million contribution from the subsidiaries ACME Packaging Solutions.
Peiris said that the company is facing difficulties to grow with the current debt, and the customers are also expecting long credit periods reducing the working capitals restricting its development.
While the funds raised through the rights issue will enable debt settlement, it will also create an environment for the company to diversify itself to tap potential markets,
"We expect the company to grow substantially in the near future which will enable us to provide better dividends to our share holders and also the share price will increase benefiting the buyers and sellers of shares," he said.
source - www.island.lk
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