Amana Takaful Plc has decided to raise Rs. 750 million via a Rights Issue to boost its capital and fund expansion.
The company’s Board on Monday resolved to recommend to shareholders a rights issue on the basis of one new share for one held at Rs. 1.50 each. This will involve issuance of approximately 500 million shares. Its current stated capital is Rs. 500 million.
Proceeds via rights will be used to meet the increased capital requirements by the regulator under Amana Takaful’s proposed capital plan and for the company’s future expansion strategies.
The Rights is subject to shareholder and regulatory approval. The price of rights is at a discount to the market. Amana yesterday saw 11.45 million of its shares traded between a high of Rs. 4.20 and a low of Rs. 3.90 before closing unchanged at Rs. 4.