Sam­path Bank Rs.12.1bn rights is­sue un­der­sub­scribed

Daily Mirror (Sri Lanka) - - PROVINCIAL -

Sam­path Bank PLC’S Rs.12.1 bil­lion rights is­sue, which of­fi­cially closed last Fri­day (June 7), was un­der­sub­scribed, the bank said in a stock ex­change fil­ing.

Sam­path Bank of­fered 89 mil­lion shares at Rs.136 each in the pro­por­tion of seven new vot­ing shares for every 23 held.

The bank yes­ter­day said only 61.5 mil­lion rights were sub­scribed.

The stock mar­ket fil­ing said the bank’s board would be al­lot­ting the un­sub­scribed rights at its dis­cre­tion to any per­son or per­sons.

Mar­ket sources told Mir­ror Busi­ness that high-net-worth in­vestor and Sam­path Bank’s sec­ond largest share­holder In­dra Silva, who holds a 9.98 per­cent stake in the bank, had not sub­scribed to his por­tion of rights.

Sam­path Bank share yes­ter­day closed at Rs.137.20, down 80 cents or 0.58 per­cent. At the time the rights is­sue was an­nounced in March, Sam­path share was trad­ing around Rs.230.

The rights is­sue was called by Sam­path Bank to bolster its core cap­i­tal, barely a year af­ter it raised a sim­i­lar amount in an­other rights is­sue.

Also, the call for fresh cash came roughly af­ter two weeks it raised Rs.7 bil­lion via a sub­or­di­nated deben­ture is­sue.

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