Dialog Finance to raise Rs.764mn via rights issue

Dialog Finance PLC, a unit of Dialog Axiata PLC, is to raise little over Rs.764.1 million through a rights issue, subject to shareholder and Colombo Stock Exchange approval.

The company plans to issue 19.1 million ordinary voting shares in the proportion of 32 new shares for every 121 existing ordinary shares, at a price of Rs.40 per share.

Dialog Finance PLC share is currently trading around Rs.43.70. As at September 30, 2018, the net asset per share stood at Rs.13.47. The company’s current stated capital is at Rs.907.8 million.

Dialog Finance said the objective of the issue is to increase the core capital in compliance with the Finance Business Act of 2017, issued by the Central Bank.

The Central Bank has already given its consent to carry out the rights issue.