NAIROBI, Kenya, Nov 15 – The Capital Markets Authority (CMA) has granted approval to listed firm TransCentury Plc to undertake a rights issue to raise Sh2.063 billion to boost the cash-strapped regional infrastructure firm.
The firm will issue and list 1,876,013,830 new ordinary shares at Sh1.10 per share with the rights being issued based on five new ordinary shares for every existing share held by each shareholder.
CMA says the approval for the issue was made subject to the firm fulfilling set conditions such as publishing its financial books for the financial year 2020 and 2021.
“The Authority’s approval of the rights issue was contingent on TransCentury Plc meeting several conditions among them, publication of financial statements for the year ended 31 December 2020 as well as availing for inspection by shareholders Management Accounts for the year ended 31 December 2021,” said CMA Chief Executive Officer Wyckliffe Shamiah.
“We are satisfied that the disclosures made in the issuer’s information memorandum comply with the requirements of Regulation 11 of the Capital Markets (Securities)(Public Offers, Listing and Disclosures) (Regulations) 2002, and contain the information that will enable investors to make an informed decision on the rights issue, “added Shamiah.
The funds raised through the issue will go towards offsetting debts owed to creditors and part of the holding company debt owed to lenders.
They will also help unlock additional working capital financing for the Group and its subsidiary businesses and meet its statutory obligations.
CMA also indicated that the funds will be used to undertake audits for the year ended December 31, 2021 and publish its statements.
In May 2021, the financially ailing firm reversed its earlier plan to delist from the Nairobi Securities Exchange arguing that it had found a better option of raising additional capital from the existing shareholders.
