First phase to raise $ 50 m; second to raise $ 30 m
The Board of Directors of John Keells Holdings PLC (JKH) stated that the company resolved to raise funds through a private placement for a maximum amount of Sri Lankan rupees (LKR), equivalent to $ 80 million, to Asian Development Bank (ADB).Issuing an announcement to the Colombo Stock Exchange (CSE), JKH said that the aforesaid fundraising is to be done through the issuance of up to a maximum of 122,500,000 new ordinary shares of the company in two phases, collectively the “Proposed Private Placement”.Accordingly, it is to be a maximum post-issue dilution of 8.5%.“The Proposed Private Placement would be for an upfront issue of ordinary shares for an initial issue size of LKR equivalent to $ 50 million (Phase 1). At the time of issue of the initial placement shares, the company will also issue to ADB non-tradable/non-transferable options which will entitle ADB, at its option and discretion, to subscribe for additional new ordinary shares of the company within a period of 12 months from the date of subscription for the initial placement shares, for an investment amount of up to the LKR equivalent of $ 30 million (Phase 2),” JKH noted, issuing a statement.In the second phase, the issue is LKR equivalent to $ 30 million while the option exercise price is subject to a minimum of Rs. 165 per share and maximum of Rs. 200 per share. The announcement further said that the options are to be exercisable during a three-month window post the completion of nine months from the date of subscription of the initial placement shares. This entitlement will expire 12 months from the date of subscription of the initial placement shares.Accordingly, the total placement shares would be up to a maximum of 122,500,000 new fully paid ordinary shares to be issued by the company under Phase 1 and Phase 2, collectively.Moreover, both initial placement shares and option shares will rank with the existing ordinary shares of the company while maximum post-issue dilution is to be up to a maximum dilution of 8.5% post issue of ordinary shares under Phase 1 and Phase 2, collectively.