Alufab Ltd, awaiting Colombo Stock Exchange (CSE) sanction for a rights issue, is gearing for a Rs 87 million Private Placement (PP) targeted at major shareholders, according to officials. “This will be for the major debt providers who are also the main shareholders and directors of the company,” an official told the Business Times. J. Claesson and Victor Press - both directors - own 44.9% each in Alufab and the rest is in the public float.
A loss-making company, which has got some serious cash flow issues, according to analysts has made a good move by going in for a private placement.
The rights issue will see two new Ordinary Shares for every one existing Ordinary Share held, at a price of Rs.38 per share.
The official said that the Private placement is subject to the CSE approving, in principle, the issue and listing of shares and obtaining of shareholder approval at a General Meeting.