TKS Finance announces Rs. 109 m Right Issue to boost capital to Rs. 1 b

The Board of Directors of TKS Finance has proposed a rights issue of 1:7 to raise a total of Rs. 109 million to increase the stated capital of the company to Rs. 1 billion. 

The current stated capital of the company is Rs. 902 million and the rights issue will enable the company to meet the minimum stated capital of Rs. 1 billion as per the Central Bank (CBSL) guidelines.

The main shareholder of the Company, Dato Seri Tiong King Sing , is expected to duly subscribe his full entitlement of the rights issue . The Company had also decided to allow its staff and some of its depositors to subscribe to the rights issue to enable them to benefit from the future capital gain, being shareholders of the company. Some senior officers of the TKS staff and some depositors have already consented to subscribe shares of the rights issue. The company is expected to be listed at the Colombo Stock Exchange by the third quarter of 2019. 

At the same time, a Malaysian company has signed a Letter of Expression of Interest to take up a strategic stake in the company, subject to due diligence to be conducted .The Malaysian company  is a venture capital company  and is involved in IT technology, and  their participation in a strategic stake in the company will  contribute towards the future growth of the company, particularly with the introduction of IT Infrastructure into the finance business and enabling the  company to be more competitive against its peers

The Board of Directors of TKS Finance Ltd. observed that subscription of the rights issue by the staff of the company is very encouraging and it reflects the confidence the staff has in the company, in which they see the potential value in their investment. Certain selected depositors will participate in subscribing for the rights issue to enable them to benefit from the future capital gain as and when the company is listed at the CSE. 

The completing of the rights issue is expected by the end of August.