Fully subscribed rights issue of Prime Finance bolsters its core capital
Prime Finance PLC, a member of the Prime group, announced that it raised capital of Rs.526.68 million, following the successful conclusion of its fully subscribed rights issue in December 2020.
The company is assigned with an issuer rating of [SL] BBB- (Pronounced SL triple B minus) with a stable outlook by ICRA Lanka Limited, subsidiary of ICRA Limited, a group company of Moody’s Investors Service.
Prime Finance PLC is a member of the Prime group, the market leader in the real estate business in Sri Lanka, which was awarded Best Property Developer in 2018, at the Property Guru Asia Property Awards in 2018.
Prime Finance PLC went for a rights issue of 41.8 million ordinary shares in the proportion of 19 new ordinary shares for every 36 ordinary shares of the
company at an issue price of Rs.12.60 per share, amounting to Rs.526.68 million. The objectives of the said rights issue were to ensure compliance with the core capital requirements stipulated by the CBSL as well as the minimum public holding requirements set out in the Listing Rules of the Colombo Stock Exchange (CSE).
With the conclusion of the said rights issue, the
core capital of the company now exceed Rs.2.1 billion, well above the stipulated regulatory minimums. Meanwhile, the minimum public holding requirement is increased to 11.86 percent.
With the said capital infusion, Prime Finance PLC is now a well-capitalised finance company in terms of the Finance Business Act Guidelines No. 01 of 2020, which was recently issued by the CBSL.