FMI issues K25 billion rights issue to fund expansion

Investment holding company First Myanmar Investment Co. Ltd., has issued a K25 billion (about US$25.6 million) rights issue for existing shareholders to finance corporate growth and expansion, it announced in a statement released in Yangon on December 3.

The rights issue will result in 2,500,000 new ordinary shares being issued at a price of K10,000 each, a discount of about 20 percent to the current price of FMI shares, the statement said.

The shares will be open for subscription by shareholders in priority from November 25 to January 8, it said, adding that shareholders would be entitled to subscribe to one new share for every six existing shares held, and would also be entitled to apply for extra shares.

Unsubscribed shares may be open for application to the public on January 9, it said. The allotment of the new shares is expected to take place a week after the subscription closes and will entitle holders to any dividends for the 2013-2014 financial year.
The new shares are only available to Myanmar nationals.

“Our economy is on the cusp of a significant boom, a period of exponential growth that may not be easily repeated in the decades to come,” the statement quoted FMI chairman U Theim Wai as saying.

“It is therefore our corporate strategy to proactively expand our existing operations and initiate start-ups in the next two to three years. To do so, we will need to strengthen our capital base and top up our war chest very quickly,” U Theim Wai said.

Source: Mizzima News Myanmar

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