Monday, 6 January 2014 00:00
Arpico Finance Company Plc has announced a Rights Issue to raise Rs. 148.75 million to boost its capital.
The Rights Issue will be on the basis of two new shares for every three held and will be issued at Rs. 50 per share.
The company’s share last traded at Rs. 100 last week and its net asset value per share is Rs. 110 as at end September 2013.
The current stated capital of Arpico Finance Company Plc is Rs. 96.3 million.
The company said funds raised via Rights will be used to boost Tier 1, long term capital adequacy requirement.
Recently the Company raised Rs. 356 million via the issuance of five year listed debentures. The issue had an option of raising a total of Rs. 600 million with it wasn’t exercised.
The Rights is subject to regulatory and shareholder approval.
The Pratapkumar de Silva family controls Arpico Finance Plc. Alfinco Insurance Brokers Ltd. holds a 40.58% stake in the company whilst Alliance Finance Plc owns 19.53%. Other major shareholders include Dawi Investment Trust Ltd. (7.93%) and K.D.D. Perera (6.60%). Its public holding is 40%.
With 62 years in the finance industry, Arpico Finance Company PLC is a fully-fledged finance company.
For the six months ended on 30 September 2013, Arpico Finance Plc’s net interest income rose by 54% to Rs. 221.7 million whilst total operating income rose by 38% to Rs. 248.3 million.
Net operating income amounted to Rs. 214.3 million, up from Rs. 162.6 million a year earlier. Profit from operations rose by 158% to Rs. 37.5 million whilst first half net profit amounted to Rs. 29.7 million, up by 213% from a year earlier.
Total assets crossed the Rs. 5 billion mark by end September 2013, from Rs. 4.6 billion as at end FY13. Liabilities amounted to Rs. 4.5 billion, up from Rs. 4.1 billion.
Board of Directors of Arpico Finance Plc comprises of B. Ponnambalam (Chairman), H. Rajudin (Managing Director), R.E. Weerasinghe, L.D. Peiris and N.M. Peiris.