Thursday, June 2, 2011

HNB revises proposed rights issue again

HNB for the second time has revised plans to raise fresh capital by almost halving the number of shares to be issued in the proposed rights issue, reducing the capital to be raised to Rs.7.2 billion from Rs.12.6 billion.

According to new plans, the number of total shares to be issued will be 35, 753, 936 compared to the earlier 71,507,870 shares (revised from the original figures). Out of the total 28, 740, 020 will be Ordinary Voting shares and 7,013, 916 Non-Voting shares. The price of shares to be issued has not been changed. The voting shares will be issued at Rs.219.50 and non- voting at Rs.119.50. Yet, the proportion of the share to be issued has been changed to 1 for 10 from 1 for 5.

Originally, HNB said it intends to raise Rs. 10.5 billion by issuing 47.9 million voting shares and almost Rs. 1.4 billion more by issuing 11.69 million non-voting shares.

On May 10, the bank said it opted for a revision and resolved to issue 71, 507, 870 shares.

Along with that, the banks also said it has dropped plans to raise at least Rs.3.17 billion from a private placement of 13.5 million shares at a price not less than Rs. 235 a share.

The amount of funds to be raised for the bank’s capital and balance sheet strengthening originally stood at Rs.15 billion. Then it was reduced to Rs.14.28 billion.

source - www.dailymirror.lk

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