Retailer issuing new stock as it seeks to raise some Sh950 million from existing shareholders.
The Government, a key shareholder, last month pledged to take up its full entitlement (13.8 per cent).
Trading in rights to Uchumi Supermarkets’ 99 million new shares has begun and will go on for 15 days before the window closes on November 18 this year.
But with the rights now to be had at a premium compared to the stock’s price, interest is feared to be subdued.
Market activity during the period will reflect interest in the retailer’s new stock as it seeks to raise some Sh950 million from existing shareholders.
The Government, a key shareholder, last month pledged to take up its full entitlement in the rights issue of three shares for every eight held.
Uchumi is offering 99,534,980 new shares at Sh9 each to raise about Sh896 million before expenses. The money is expected to go into funding expansion.
Shareholders as at October 22 can renounce, abandon, sell or transfer all or part of their rights. Uchumi shares closed at Sh8 Friday. The price of the rights offer, thus, represents premium of about 12 per cent.
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