SUR­PRISE!

Finweek English Edition - - INVESTMENT -

Sur­pris­ingly, RBA Hold­ings an­nounced a rights is­sue just two weeks af­ter its re­sults. Sure, the re­sults were mod­est, but why not an­nounce the rights is­sue with the re­sults? Surely noth­ing mas­sive has hap­pened in the t wo weeks that fol­lowed for RBA Hold­ings sud­denly to re­quire a rights is­sue? For the year end­ing De­cem­ber it had paid back most of the di­rec­tor loans to the com­pany, although it still had a bank over­draft of al­most R5m (over­drafts are far from ideal).

It is also worth not­ing that the com­pany is­sued some 80m new shares dur­ing the 2012 fi­nan­cial year, rais­ing just over R10m. This rights is­sue raises an­other R10m, but re­quired 125m new shares to be is­sued as the price has been un­der pres­sure. This means 205m new shares would have been is­sued in the last twelve months, an in­crease of some 85% in the num­ber of shares in is­sue.

RBA Hold­ings

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