This archive report was first published on 7 May 2021.
On May 7, 2021, the Capital Markets Authority (CMA) granted approval to Crown Paints Kenya to undertake a rights issue to raise Sh711,810,000 by issuing and listing 71,181,000 new ordinary shares on the Nairobi Securities Exchange.
The rights issue will be based on one new ordinary share for every one existing share, giving existing shareholders the opportunity to purchase additional shares.
The main aim of the rights issue is to provide the company with financial flexibility to mitigate the challenges posed by the ongoing Covid-19 pandemic and boost the growth strategy for the company.
The company plans to use the rights issue funds to develop new products, retire current facilities, and fund regional expansion.
According to CMA Chief Executive Officer Wyckliffe Shamiah, the disclosures made on the rights issue comply with the requirements of the Fourth Schedule to the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2002.
Shamiah added that the Authority had reviewed the application for exemptions from complying with Regulation 4 of the Capital Markets (Take Over and Mergers) Regulations, 2002, in relation to the intention of the company's major shareholders.
