Abans Finance in Rs.185 mn rights issue

30 December 2015 03:12 am - 0     - {{hitsCtrl.values.hits}}

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Abans Finance PLC will be opting for a rights issue to raise Rs.185 million for expansionary activities, a filing at the Colombo Stock Exchange said.

One new share will be issued for five existing shares, for a total of 7.4 million shares. The price per share is Rs.25, lower than its current traded price of Rs.41.90.

“The purpose for which the proceeds of the issue are to be utilized (is) to expand the lending activities of the company, and to fulfil the capital adequacy requirements that have arisen as a result of the business expansion,” the company said.

The Budget 2016 proposed to restrict banks from leasing activities, giving more space to finance companies.The rights issue is subject to the Colombo Stock Exchange approving in principle the issue and listing of shares and obtaining shareholder approval at an Extraordinary General Meeting.

Parent company Abans PLC owns 89.26 percent of the shares in Abans Finance.

As at September 30, Abans Finance had 37 million shares, representing Rs.382.37 million in stated capital, which showed no change from the first quarter ended June.

Net assets were valued at Rs.5.91 billion, increasing from Rs.5.49 billion in the same period, with net assets per share also increasing to Rs.16 from Rs.14.95 in the previous quarter.

For the second quarter ended September, the company posted a net profit of Rs.40.98 million, improving from Rs.35.62 million year-on-year (yoy), while earnings per share improved to Rs.1.11 from Rs.0.96 yoy.

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