Softlogic Holdings’ Rs. 3 b Rights Issue undersubscribed by Rs. 954 m

Chairman  Ashok Pathirage

Softlogic Holdings PLC’s Rs. 3 billion worth Rights Issue had been undersubscribed by Rs. 954 million.

The company had a Rights Issue of 298,135,802 shares at Rs. 10 each and 178,881,481 Warrants (three warrants for every five rights shares subscribed) on offer.

When the issue closed early September, total shares subscribed for amounted to 202.7 million worth Rs. 2.02 billion, whereas the full offer was for 298.13 million shares worth Rs. 2.98 billion. It closed with 95.42 million shares worth Rs. 954 million undersubscribed. Warrants issued were 57.25 million less than originally envisaged.

Acceptance based on entitlement was 93.26 million shares worth Rs. 932.6 million, whilst the issue saw 109.45 million additional shares applied for worth Rs. 1.09 billion, making a total of Rs. 2.02 billion.

Softlogic major shareholders, Chairman Ashok Pathirage and Sameen Ceylon Holdings Ltd., subscribed to their full entitlement by investing Rs. 2.02 billion of total fresh capital raised through the Rights with warrants issue of Rs. 2.98 billion constituting 67.86% of the total issue.

The Rights cum Warrants issue was part of Softlogic’s plans to raise Rs. 10 billion in order to infuse fresh capital to increase the total capital base of the company for working capital requirements and to enable the company to settle debts.