Shareholders have given the green light for local investment firm Barita Investments Limited to raise fresh capital through an additional public offering (APO).
They gave their stamp of approval at the company’s annual general meeting on Monday, July 6, having approved two resolutions to effect the APO in which new shares in the company will be sold to the general public. After successfully raising $9.2 billion through two oversubscribed rights issues in 2019, Barita is seeking additional capital to exploit new business opportunities on the horizon.
Shareholders approved that the company issue up to 200 million new ordinary shares, with the option to upsize the issue by another 100 million ordinary shares in the event of an oversubscription. No price has been set for the APO as this will be done by the company in consultation with its investment advisors in the coming days.
In Monday’s trading, Barita closed at $57.48. Barita’s planned APO comes just after Proven Investments Limited closed its APO without any uptake due to COVID-19. At least three other listed companies, namely Pulse Investments Limited, Panjam Investments Limited, and Sygnus Credit Investments Limited, earlier this year signalled their intention to consider APOs to fund future opportunities.
— Durrant Pate