Transcorp Hotels Plc has submitted an application to the Nigerian Stock Exchange for the approval and listing of rights issue of 2.659 billion ordinary shares of 50 kobo each at N3.76 per share, on the basis of seven new ordinary shares for every 20 ordinary shares held. In a notice to its shareholders, the company said that in compliance with Rule 330 of the Rules and Regulations of the Securities and Exchange Commission, notice is given to the existing shareholders of Transcorp Hotels that the company will be offering by way of rights, 2,659,574,468 ordinary shares of 50 kobo each at N3.76 per share.
“This is pursuant to the approval received from the Company’s shareholders at the Extra-Ordinary General Meeting held on Monday June 29, 2020. “Applications for approval of the Rights Issue have now been filed with the Securities and Exchange Commission and the Nigerian Stock Exchange, and the qualification date for the Rights Issue was July 13, 2020 (in line with extant regulations). “The company expects the Issue to open and close within the month of August 2020, however, the exact dates shall be determined by the timing of regulatory approvals,” the notice signed by Africa Prudential Plc, registrar to the company, noted.
Shareholders of Transcorp Hotels had recently unanimously authorised the board of directors to raise N10 billion in its proposed rights issue to fortify its balance sheet. The approval given at the extraordinary general meeting of the company, which took place yesterday, in Lagos was to issue 2,659,574,468 ordinary shares of 50 kobo each by way of a rights issue to the shareholders based on 7 new ordinary shares for every 20 ordinary shares of 50 kobo each held at a price of N3.76 per share.