The Capital Markets Authority (CMA) has approved the Crown Paints Kenya Plc fundraising plan through a rights issue to raise Ksh 711,810,000.
The firm plans to list 71,181,000 shares on the Nairobi Securities Exchange on the basis of one new ordinary share for every one existing share at KSh10 per share.
According to the Information Memorandum, the main aim of the rights issue is to give the company financial flexibility to mitigate the challenges posed by the ongoing Covid-19 pandemic and boost the growth strategy for the company.
The Group’s management plans to use the rights issue funds to facilitate the development of new products, retiring current facilities, and funding regional expansion.
“The disclosures made on the rights issue comply with the requirements of the Fourth Schedule to the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2002, and contain information that will enable investors to make an informed decision on the rights issue,” CMA Chief Executive Officer, Mr Wyckliffe Shamiah said in a statement.