HNB Finance to raise Rs. 1 b via Rights Issue

Wednesday, 15 January 2025 00:28 - - {{hitsCtrl.values.hits}}

HNB Finance PLC has announced a Rights Issue to raise Rs. 1 billion.

The proposed Rights Issue is on the basis of five new shares for every 24 held with voting shares at Rs. 3.40 each and non-voting at Rs. 3 per share. The number of shares to be issue will be 296.12 million voting shares and 62.12 million non-voting shares. The Company’s current stated capital is Rs. 223.5 million represented by 1.42 billion voting shares and 298.2 million non-voting shares.

The funds raised via Rights Issue will be used to improve the Capital Adequacy Ratios of the Company and lending purposes.

The voting share last week closed at Rs. 4.50 and non-voting at Rs. 5.30.

HNB holds 51% voting stake in the finance company whilst Prime Lands Group owns 31%. Public holding of voting shares is 11.68% held by 103,000 shareholders.