Unity Foods to issue right shares, will raise Rs5.4bn
Unity Foods Limited announced on Monday to raise Rs5.4 billion through a rights issue of 200 million shares at a price of Rs27 per share (premium of Rs17 per share).
The issue would be in the ratio of approximately 20.12 right shares for every 100 existing ordinary shares.
According to the notice published on the Pakistan Stock Exchange (PSX), the Board of Directors of Unity resolved that “the ordinary paid-up share capital of the company be increased from Rs9,940,500,000 to Rs11,940,500,000 by issue of 200,000,000 ordinary shares of the company of Rs10 per share.”
The shares to be offered in proportion to the number of shares held by each shareholder (i.e., as right shares) at a price of Rs27 per share (i.e., at a premium of Rs17 per share), in the ratio of approximately 20.12 right shares for every 100 existing ordinary shares of Rs10 each (i.e. approximately 20.12%), against payment to the company of the price of the share subscribed.
The purpose of the right issue is to meet the increased working capital requirements of the company and enhance shareholders' value, read the notice
Unity Foods Limited was incorporated in Pakistan in 1991 as a Private Limited Company and subsequently converted into a Public Limited Company on June 16, 1991. Shares of the Company have been listed in the bourse since February 01, 1994.
“The issue is being made at a premium of Rs17 per share to par which reflects c. 30,96% discount to the last 6 months volume-weighted average share price. A discount to market price is also in line with current market practice,” read the notice.
The Share Transfer Books of the company will be closed from December 13, 2021 to December 17, 2021 (both days inclusive) to determine the Entitlement of Right Shares.
Comments
Comments are closed.