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Barita to close and upsize oversubscribed APO offer

Barita Investments Limited (BIL) says its invitation for subscription for 173,733,220 new ordinary shares is oversubscribed and will close at 4:00 p.m. today, September 16.

The offer was made subject to the prospectus dated July 30th, under which Barita states it will be exercising its right, pursuant to the prospectus, to “upsize” the APO.

It said further details with respect to the upsizing will be provided on or before Friday, September 18, 2020. Applicants for new ordinary shares in the APO will be advised of the basis of allotment on Monday, September 21, 2020.

The company was targeting a capital raise of between $9 billion and $13.5 billion.

The fund raising effort is the second in a year. The company, in 2019 raised J$10.3 billion in equity capital.

The current APO which opened on August 26 and closes today, September 16, 2020, includes the ability to upsize by inviting offers for an additional 86,866,610 shares in the capital of company.

The offer ranged between $49 per unit for small investors, through $49.75 for Hotel workers, Farmers and Civil Servants, to $52 per share for Cornerstone Investors, Barita clients and investors in Key

Proceeds of the APO, the prospectus said, will be used to increase the company’s investment banking underwriting capacity and  to upgrade the technology platform to a global platform.

The company is also seeking to seed new managed funds and expand the product offerings. It is additionally seeking retail footprint expansion, locally and regionally.

The new funds, it was also indicated in the prospectus, will be used for working capital support to “develop talent, brand and operating capacity to accommodate the existing growth trajectory.”