City Pharmacy Limited (CPL) is offering over 71 million new shares at a price of 60 toea as it intends to raise more than K40 million.
In a statement released by the Port Moresby Stock Exchange (POMSOX) CPL chairman, Mahesh Patel, said the rights issue is designed to enhance the liquidity and gearing position of CPL to ensure the company in a strong position moving forward.
Patel said approximately 71,690,730 new shares will be issued and has been partially underwritten to an amount of K19 million, however, if fully subscribed, will raise in excess of K40 million.
“The object of the rights issue is to provide additional liquidity to the business and will be used by City Pharmacy to reduce existing creditor balances and to fund the re-fit and the re-opening of the Waigani Central Stop N Shop supermarket outlet,” said Patel.
Patel said under the rights issue, eligible shareholders are entitled to acquire one new share for every two shares held at 5pm (Port Moresby time) on January 9th 2018.
New shares will rank equally with existing shares in all respects from allotment, including entitlements to individuals.