COMBank to raise Rs. 22.5 b via Rights Issue

The Commercial Bank is to raise Rs. 22.5 billion via a Rights Issue, thereby increasing the Tier I and the total Capital to accommodate and facilitate future business growth.

The move will see issuance of 252.08 million voting shares on the basis of 1 for 5 at Rs. 85 each raising Rs. 21.42 billion and 15.847 million non-voting at Rs. 68 per share, raising Rs. 1.09 billion.

Voting share of Commercial Bank closed yesterday at Rs. 112.75 down by 75 cents and non-voting was down by 30 cents to Rs. 89.80

The Rights Issue is subject to the CSE approving in principle and listing of shares and obtaining Shareholder approval at an Extraordinary General Meeting on a date to be decided in due course. If Employee Share Option Plan (ESOP) options are exercised by employees, the number of Ordinary Voting Shares mentioned below will be increased, accordingly.

DFCC Bank holds 125% of voting stake in Commercial Bank followed by Indra Silva (9.89%), EPF (8.61%), D.P. Pieris (7.7%), IFC (7.1%0 and SLIC Life Fund (5%). Major non-voting shareholders include ETF (7.78%), Akbar Brothers (4.85%) and GF Capital Global (2.3%).