YANGON—First Myanmar Investment Co Ltd, a local investment holding company, has begun issuing an additional 250,000 new ordinary shares to be offered to the public at a price of Ks 10,000 (US$ 10.17) each, starting from January 9, company sources say.
The additional offering shall be open for 10 business days. The public is invited to place their subscriptions through the FMI Share Department and Trading Centre by 6 p.m. on January 22.
Shares will be allotted on a first come, first serve basis subject to the sole discretion of the board of directors on the allotment. Proceeds from the additional share issuance will be used to finance corporate growth and expansion of existing businesses of the FMI group of companies.
“Our decision to launch more shares is due to the significant interest from the public, and this is a strong testament to the confidence the market has for FMI’s long-term growth as well as the trust in the ability of management to deliver results,” said Theim Wai, Chairman of FMI.
Earlier on Friday, FMI announced the successful completion of its rights issue of 2.5 million new ordinary shares at an issue price of Ks 10,000 per new ordinary share to existing shareholders.
Shareholders were entitled to subscribe for one new ordinary share for every six existing ordinary shares held.
“We want to thank FMI shareholders for their support of the rights issue and their continued confidence in the company at this exciting time of its development,” said Theim Wai.
The capital raised from the rights issue will be used to finance company projects that include the Thilawa Special Economic Zone, in which FMI has committed to subscribe for 5-9 percent of the Myanmar consortium.
The Thilawa SEZ is a 2,400-hectare site situated adjacent to the Thilawa port in Thanlyin, near Thanlyin Star City, FMI’s latest flagship residential development. It is one of the largest residential projects in Myanmar.
Other projects include the expansion of existing operations in the tourism and automobile divisions, the building up of FMI Air following the grant of a temporary air operator’s certificate, as well as additional investment in Meeyahta International Hotel Ltd, a 10-acre mixed used property development in the heart of downtown Yangon comprising two hotels, two office towers, a retail shopping mall, a service apartment and a high-end condominium.
“We want to further strengthen our cash position so that we can proactively expand our existing operations and create start-up opportunities in the next two to three years,” said Theim Wai, who is also the chairperson of Yoma Bank.
“The additional share offer will increase FMI’s market capitalisation and enlarge its shareholder base. It will also provide opportunities for more Myanmar nationals to be part of FMI’s growth and success as we embark on a number of transformational projects in the country.” The funds raised from the share offer will also be used to help increase the paid up capital of Yoma Bank.
“There is vast opportunity in Myanmar in a number of strategic sectors, and our key strength is that we are a partner of choice for many international companies looking to expand into Myanmar, as well as our ability to attract strong talent,” he said.
Last month, FMI together with Yoma Strategic Holdings Ltd formed companies to distribute and service Mitsubishi and Hino vehicles. On the service sector front, plans are underway to construct a 46-room international standard hotel with conference and banquet facilities at Pun Hlaing Golf Estate in Hlaing Thaya Township.
Source: ELEVEN Myanmar