TransCentury eyes Sh2 billion from new rights issue

TransCentury CEO Ng’ang’a Njiinu.

TransCentury Group chief executive and managing director Ng’ang’a Njiinu. 

Photo credit: Nation Media Group

Listed investment firm TransCentury will proceed to raise Sh2 billion by issuing over 1.8 billion shares after the markets regulator gave its nod.

Following approval by the Capital Markets Authority (CMA), the company will list 1,876,013,830 new ordinary shares at Sh1.10 per share, which is expected to raise a total of Sh2.063 billion. 

The rights will be issued based on five new ordinary shares for every one existing share held by each shareholder, the CMA said on Tuesday.

“We are satisfied that the disclosures made in the issuer’s information memorandum comply with the requirements of Regulation 11 of the Capital Markets (Securities) (Public Offers, Listing and Disclosures) (Regulations) 2002, and contain the information that will enable investors to make an informed decision on the rights issue”, CMA Chief Executive Officer Wyckliffe Shamiah noted.

The authority said proceeds of the rights issue will be used to settle debts owed to creditors and repaying part of the holding company debt owed to lenders, and to unlock additional working capital financing for the Group and its subsidiary businesses.

The company will also use part of the funds raised to undertake audits and publish its financial statements for the year ended December 31, 2021, which were delayed due to lack of funds. They were due for submission and publication on April 30, 2022.

“The Authority’s approval of the rights issue was contingent on TransCentury Plc meeting several conditions among them, publication of financial statements for the year ended December 31, 2020 as well as availing for inspection by shareholders Management Accounts for the year ended December 31, 2021,” CMA stated.

A minimum of 50 percent of the rights are required to be accepted for the rights issue to be declared successful.