Nigerian paint maker, Portland Paints, has opened Open its N1billion Rights Issue.
The company says its raising N1.02 billion through a rights issue of 600 million ordinary shares of 50 kobo each at N1.70 per share. The provisional allotment for the rights issue is on the basis of three new ordinary shares for one ordinary share.
The application list will close on Wednesday, March 1, 2017.
What it will be used for?
Chairman, Portland Paints and Products Nigeria (PPPN) Plc. Mr. Larry Ettah has said the new equity funds would be used to restructure the company’s balance sheet and support its business expansion programme.
“We will apply the planned rights proceeds to minimise the debt exposure risks of our business as well as carry out targeted expansion in our operations. The business will focus on its growth brands as well as make the necessary investment in marketing to improve its brands’ awareness and visibility,”
The capital market has been agog with rights issues as companies jostle to restructure their balance sheets. Most of the funds being used are channelled towards reoaying expensive debts obtained before the Naira plummeted.
