Transcorp Hotels Plc has applied to the Nigerian Stock Exchange (NSE) for the approval and listing of a rights issue of 2.66 billion ordinary shares.

In a notice to its shareholders, the company said it would be offering by way of rights 2,659,574,468 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.

 “This is pursuant to the approval received from the company’s shareholders at the Extra-Ordinary General Meeting held on June 29, 2020.” It said,

The notice further stated that 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 shareholders unanimously authorised the Board of Directors to raise N10bn in its proposed rights issue to fortify its balance sheet at the recent Extraordinary General Meeting of Transcorp Hotels.

The Chairman of Transcorp Hotels Plc, Mr Emmanuel Nnorom, said, “This approval and endorsement of shareholders empowers the board and management to look to the future with confidence despite the current harsh operating environment.”

The shares will be issued from the authorised share capital of the company which is currently at N7.5bn, and the resultant issued and fully paid-up share capital will be N5,129,989,184.