TransCentury Group (TC) has begun trading its rights issue at the Nairobi Securities Exchange (NSE) as it hopes to raise Sh2.063 billion.
The trading that started on December 29 is aimed at helping the infrastructure investment firm recapitalise the business, reduce debt and unlock working capital for its underlying businesses.
TC shareholders will have until January 23, 2023, to take up the 1.87 billion new ordinary shares which are on offer at the price of Sh1.10 per piece.
This comes at a time the share price has shed 20.51 per cent of its value to close at Sh0.93.
This is below the share price of Sh1.11 on November 15 when the details of the cash call were first disclosed. This means that it is cheaper for investors to buy the shares on the open market compared to the rights issue.
“Our shareholders taking up their rights will be investing in a company that has strengthened governance structures and exhibited agility and resilience even in the current economic environment,” said Nganga Njiinu, the Group's Chief Executive Officer.
“With our recently unveiled strategic plan, we are refocusing on our core business – investing for growth to take advantage of the enormous opportunities that are presenting themselves in the region.”
The results of the rights issue will be announced on February 9 and the new shares be listed to trade from February 28, 2023.
