TPS rights issue raises Sh1.6b

September 21, 2010

, NAIROBI, Kenya, Sep 21- Tourism Promotion Services (TPS) Eastern Africa Limited, the owner of Serena Hotels managed to collect Sh1.6billion from their Rights Issue where they sought to raise Sh1.18 billion, according to the figures from the issues’ lead arrangers.

The total number of shares that were taken up was 22. 8 million valued at Sh1.1million against the 24.7 million shares on offer. The 1.7 million lapsed rights or shares that were not taken up during the issue were put on offer and an application for 10.4 million shares was received.

At the discounted price of Sh48, this translated into Sh501.5 million bringing the total amount raised to Sh1.6 billion.

Commenting on the transaction, Managing Director Mahmud Janmohamed said this was a good indication that the firm’s growth plans were right on track.

“This is a great achievement for us and we would like to thank our shareholders for their continued support for our mission, growth strategy and capitalisation plans,” he enthused.

Investors who applied for up to 1000 additional shares will get them in full while those whose application was above 1,000 will get the minimum (1000) plus an additional 11.57 percent of the application amount.

At the same time, the listing of the new shares has been brought forward from October 4 this year to September to 27.

“The Capital Markets Authority (CMA) has given Rights Issue arrangers approval to bring forward the timetable by a week indicating the significant efficiency and effectiveness of the transaction advisors, registrars and the receiving bank,” the firm announced.

Amish Gupta, a director of Standard Investment Bank, the joint lead transaction advisor said the issue elicited significant interest buoyed by the fact that the major shareholders claimed their rights on the launch day.

Collectively, Aga Khan Fund for Economic Development, PDM Holdings, Industrial Promotion Services (IPS) Kenya and the International Finance Corporation took up 59 percent of the rights on offer valued at Sh752 million, a few minutes after its rights issue was launched.

This not only sent a positive signal to the market and but also increased its chances for success.

“This is very exciting news for us and it goes to demonstrate the high demand in the market and is an indication of the confidence that shareholders have in TPS Eastern Africa Limited as  a company,” he said adding that it also demonstrated the returning confidence in the equities market.

The availability of funds now gives the company the green light to proceed with its expansion plans and to take advantage of growth opportunities in East Africa.


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