CMA Approves TransCentury Ksh.4.6 Billion Rights Issue

May 9, 2022
1 Min Read
The Capital Markets Authority (CMA) has cleared the way for beleaguered infrastructure investment firm TransCentury to raise Ksh.4.6 billion ($40 million) through a shareholder rights issue.

The approval will see the company shareholders take five new shares for every one share held as approved in its last shareholder meeting.

Proceeds from the issue are expected to bolster the firm’s turnaround activities including unlocking new working capital, recapitalizing the business and reducing debt.The CMA noted the company had provided adequate disclosures in the offer documentation accompanying the proposed rights issue.

The company is expected to provide further details to the rights offering and subsequent information on when the offer opens.

Rights issues have remained to raise additional capital by listed firms to firm up operations.

Last year for instance, Crown Paints raised Ksh.809.6 million through the issue of 71.2 million additional shares.

Other recent rights issues have included Longhorn Publishers, KenGen and Housing Finance.

TransCentury has failed to disclose its financial results since June 2020 as it continues to traverse financial troubles.

In six months to June 2020, the company returned a loss of Ksh.1.4 billion having reversed a profit of Ksh.297.6 million a year prior.

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