Karachi: In a notification sent to the bourse on Tuesday, Maple Leaf Cement Factory (MLCF) has announced that it will be conducting a rights share issue for raising Rs4.28b from the Pakistan Stock Exchange.
This money is being raised for part-funding the cost of an additional dry process clinker production line.
The notification from MLCF read that the Board of Directors had given approval to issuing 65,966,740 right shares to existing shareholders at a price of Rs65 per share (Rs55 per share premium) in portion of 12.50 right shares for every 100 ordinary shares held.
According to a report compiled by BMA Capital, MLCF retains the highest retention rate in the cement industry, with a 90pc share in white cement sector and 8.4pc share in grey cement sector. A 40MW coal based captive power plant which is expected to come online soon will help provide tax benefits and lessen power cost of the company.
This production line expected to come online by 4th financial quarter of 2019 is expected to cost Rs23b, of which 47.8pc will be financed by debt, 18.7pc right share issue and 33.5pc by internal cash generation.