This archive report was first published on 16 July 2021.
On July 16, 2021, Crown Paints Kenya PLC's additional rights issue shares, totaling 71,181,000, were listed on the Nairobi Securities Exchange (NSE) following a successful rights issue that opened on June 10, 2021, and closed on June 30, 2021.
The rights issue had an oversubscription rate of 13.7%, with a total of 80,959,470 shares applied for against an offer of 71,181,000 shares, according to Bob Karina, Chairman of Faida Investment Bank, who served as the transaction advisor.
"The total number of shares that were applied for under the Rights Issue were 80,959,470 against an offer of 71,181,000 shares," Karina stated.
Crown Paints' Group CEO, Dr. Rakesh Rao, expressed gratitude to shareholders for participating in the successful rights issue, saying it demonstrated their confidence in the company.
"On behalf of the Board of Directors, I wish to thank all shareholders for participating in the just concluded successful Rights Issue. It is a true demonstration of the confidence shareholders have in the company. This is a launchpad towards our goal of growing profitability, driving sustainable development and long-term equity value," Dr. Rao said.
The rights issue, which was approved by the Capital Markets Authority on May 5, 2021, met the minimum subscription rate of 50% and raised a gross amount of Sh711,810,000.00, with 71,181,000 shares accepted.
The announcement was made with the approval of the Capital Markets Authority and involved ABSA Bank Kenya PLC as the receiving bank, Ernest & Young LLP as the reporting accountant, and Anjarwalla and Khanna LLP as the legal advisors.
