The Capital Markets Authority (CMA) has approved a rights issue for the regional infrastructure investment firm TransCentury.
The beleaguered firm is seeking to raise Kes4.6 billion from the issue as part of its turnaround plan including unlocking new working capital.
The Nairobi Securities Exchange-listed company said the money will go towards supporting its turnaround, paying off debts as well as unlocking working capital.
“We are proud to be offering to our shareholders a company that has exhibited tremendous agility and resilience at this point that we have made significant strides in the turnaround strategy that we began implementing in 2017,” CEO Ng’ang’a Njiinu said in a statement.
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A rights issue is an offer given by a company to the existing shareholders to purchase a promotional number of additional shares at a given price, within a fixed period of time.
TranCentury shareholders are to be offered 5 shares for every share held with the issue that is expected to open soon.
Rights are often transferable and a shareholder may sell them in the open market.
Founded in 1997, TransCentury runs three operating divisions across 14 countries in East, Central, and Southern Africa with a focus on energy, transport, water, industrial, and agriculture sectors.