Olympia to raise P16.5 million in the debt market
Olympia Corporation has told shareholders that they intend to raise capital by way of a rights issue. According to the company approximately P 16, 475,308, by way of a rights issue of 35 820 000 Offer Shares is expected to be raised. “The Offer Shares are being offered by way of a Rights Issue to shareholders on the register at the close of business on 13 October 2020.
The number of Offer Shares results in a ratio of 1.2524 Offer Shares for every Share held; for the purposes of the Offer that ratio has been rounded down to 1.25, with the Company offering 1.25 Offer Shares for every Share held.
The Offer Shares will, when issued and fully paid, rank pari passu in all respects with the shares now in issue,” said the BSE listed company. Furthermore, the company said any allocation of Offer Shares that would result in fractional entitlements will not be issued but will be paid out in cash for the benefit of the Shareholder to whom the fraction is to be issued. “Any Offer Shares that have not been subscribed for by way of the Rights Issue (‘ the Excess Shares’) will be taken up by Olympia Capital Holdings Limited which company has signed an underwriting agreement, undertaking to subscribe for any Excess Shares,” said the company.
Botswana Stock Exchange has given its principal approval to the rights issue, and the listing of the renounceable letters of allocation and the subsequent Offer Shares.
For its first six months of the year to June 2020, the group’s top line increased marginally by 1%, and earnings decreased by 48.4 percent to a total comprehensive profit of P599, 547.
The company upbeat the business environment will improve. “We saw a marked improvement if the organisations performance during the first quarter of 2020 in comparison with the same period last year.
The lockdowns that ensued both in Botswana and South Africa had a profound effect on our second quarter revenues and subsequently our profits. For one and a half months there we had no production/ sales and thus no recoveries on our operating costs,” said the company.
The company’s chemicals manufacturing/ supply unit remained open during the lockdown as an
essential service provider notwithstanding the challenges it experienced with supply chain procurements and movement permits. The later part of quarter two ( post lockdown) has seen marked improvement in our various business units.
“As a company we continue to be cautiously optimistic about regarding our future performance, however c ur rent bus i n e s s indications point towards improved performance in the second half of 2020,” said the company.