Lankem to raise Rs. 1.2 b via Rights; Share subdivision to follow

Friday, 20 June 2025 00:04 - - {{hitsCtrl.values.hits}}

Lankem Ceylon PLC is to raise Rs. 1.2 billion via a Rights Issue which will be followed by a share subdivision.

The Board of Directors of Lankem resolved to issue 17, 156,919 ordinary shares at a price of Rs. 70 per share by way of a Rights Issue in the proportion of one new ordinary share for every three existing issued ordinary shares.

The Board of Directors also resolved that, in their opinion, the consideration for which the shares are to be issued is fair and reasonable to the entity and all existing shareholders.

The proceeds from the Rights Issue will be utilised for the following purposes; for the settlement of a related party due and part settlement of bank loans.

The stated capital of the company is Rs. 1,282,697,140.

The Rights Issue is subject to the exchange approving, in principle, the issue and listing of shares and obtaining shareholder approval at an Extraordinary General Meeting of the company.

Lankem also said following the completion of the proposed Rights Issue and on the basis of the Rights Issue being fully subscribed, which shall be then 68,627,676 ordinary shares, it will be subdivided on the basis of every one existing issued ordinary share being subdivided into two issued ordinary shares, thereby increasing the number of shares of the company to 137,255,352 shares.

The increase of shares by way of a subdivision is subject to obtaining shareholder approval at an Extraordinary General Meeting.

Post-announcement, the Lankem share price gained by Rs. 4.10 or 5% to Rs. 84.40. In the quarter ended 31 March 2025, Lankem’s highest share price was Rs. 95 and the lowest was Rs. 76.20, and closed at Rs. 82.

The Colombo Fort Land & Building PLC (55.22%) and E.B. Creasy & Company PLC (17.51%) are the major shareholders, along with a few other related parties. The public float of Lankem is 14.15% held by 2,106 shareholders.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.