FML raise $17.25 mln in rights offer
Insurance24
HARARE, First Mutual Holdings rights offer raised $11.67 mln after a subscription rate of 67.68% at the close of the offer. The underwriter’s portion was $5.57 mln, accounting for 32.32% to bring the subscription rate to 100%.
The proceeds are targeted at financing the acquisition of a 80,92 stake in NicozDiamond as well as capitalising the operations. The rights offer is underwritten 90% by NSSA and 10% by LHG Malta.
At the closing date, 6 October 2017, rights offer subscriptions were 67.68%, a total 142,387,314 shares valued at $11.68 mln while the Underwriters Portion was 32.32% with a value of $5.56 mln from 67,984,081 shares.
FML said that the Rights Offer shares were issued and listed on the Zimbabwe Stock Exchange effective Friday, 13 October 2017.
“The Board of Directors and Management of First Mutual Holdings Limited take this opportunity to express their appreciation to shareholders, the underwriters and other stakeholders for their valued support,” said the company in a statement.
Terms and conditions of the offer were that FML would raise $17.25 mln by way of a renounceable offer of 210,371,395 new FML shares with a nominal value of $0.001 at a ratio 44 new FMHL ordinary shares with a nominal value of $0.001 per share for every 100 FMHL ordinary shares with a nominal value of $0.001 per share held as of the FMHL Rights Offer Record date at price of 8.20 cents per FMHL ordinary share.
Zimre Holdings is the second largest shareholder in Nicoz at 30.03%, and the company has since terminated intentions of disposing its holding.
The process to acquire Nicoz is targeted to complete at least within 12 months as there is need to go through several other regulatory approvals.
According to FML chief executive officer Doug Hoto, an additional $50 mln will be realised to the Group’s balance sheet of $229 mln as at December 2016.
