Prime Finance to raise Rs. 526 m via Rights

Prime Finance Plc has announced a Rights Issue to raise Rs. 526.6 million to boost its core capital.

The company’s Board has resolved to issue shares by way of a Rights Issue in the proportion of 19 ordinary shares for every 36 existing shares at a consideration of Rs. 12.60 each. It will involve the issuance of 41.8 million new voting shares.

The proceeds of the issue are to be utilised to comply with the requirements of the Finance Business Act Direction on Minimum Core Capital and Minimum Public Holding. Proceeds of the issue will be used for the lending business of Prime Finance Plc.

Its net asset value per share as at 31 December 2019 was Rs. 21.06. The share closed trading at Rs. 15.20 yesterday.

Assets were worth Rs. 6.4 billion, up from Rs. 5.7 billion as at 31 March 2019. Liabilities were Rs. 4.7 billion, up from Rs. 4.08 billion.

Prime Lands Ltd. owns 94.6% stake of the company which has 935 public shareholders.