Unity Plaza owner announces share split; rights issue

On’ally Holdings PLC, the owner of the Unity Plaza building in Bambalapitiya, is to sub-divide its shares and subsequently go for a Rs.110.8 million rights issue, in a bid to comply with the minimum public holding rules of the Colombo Stock Exchange (CSE).

Accordingly, the company plans to split every existing ordinary share into five ordinary shares, thereby increasing the number of shares to 87.5 million from the current 17.5 million, subject to shareholder approval at a General Meeting.

The sub-division will not result in any change to the stated capital of the company. The current stated capital of the company is little over Rs.175 million.

Subsequent to the share sub-division, On’ally Holdings plans to issue little over 5.8 million new shares by way of a rights issue in the proportion of one new share for every 15 shares held at a price of Rs.19 per share.

“The objective of the rights issue is to increase the public holding percentage of the company and therefore the two major shareholders, namely the Urban Development Authority and Renuka Capital PLC will not be subscribing for any shares in the rights issue,” the company said in a filing.

The proceeds of the rights issue will be utilized for the refurbishment of the Unity Plaza building, the filing added.

The rights issue is subject to the CSE approving in principle, the issue and listing of shares and the company obtaining shareholder approval at a General Meeting.

As at December 31, 2018, the Urban Development Authority had a 47.6 percent stake in On’ally Holdings, while Renuka Capital had 46.5 percent. The public holding as at the same date was 5.24 percent comprising of 774 shareholders.