Karachi January 19 2022: The Board or Directors of Flying Cement Company Limited, in their meeting held on January 18, 2022 have decided to increase the paid-up share capital of the Company by issue of a further 300,000,000 (Three Hundred Million) ordinary shares, having face value of PKR 10/- (Pak Rupees ten} each, as Right Shares, to be offered to the members of the Company in the proportion of approximately 75.9878 Right Shares for every 100 ordinary shares held i.e. approximately 75.9878 percent, at a price of PKR 10/- {Pak Rupees Ten) per Right Share (i.e at par).
The Share Transfer Books of the Company will be closed from February 11, 2022 to February 18, 2022 (With two days inclusive) to determine the entitlement of Right Shares.
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The purpose of the Right issue is to raise funds to enable the Company to reduce current debt levels and favorably improve its capital structure, by reducing leverage in an increasing interest rate environment, and growing working capital requirements and achieve economies of make, pay for capital expenditure towards completion of the Line-2 plant of 7,700 TPD of clinker and, consequentially, improves the company profitability and financial ratios which is expected to maximize shareholder return.
The proceeds from the Right Issue will be utilized towards reducing the Company’s current borrowings and will augment the Company’s liquidity in a more optimal capital structure with reduced leverage. This will improve the attractiveness of the Coinpany for investors owing to lower finance costs and improvement in margins, in an environment where interest rates have considerably increased and may increase further in the near future. The proceeds of the right shares will also be utilized for meeting growing working capital requirements and paying for capital expenditure towards completion of the Line-2 plant of 7,700 TPD of clinker. with the objective to profit in the long run would enhance the expected returns to improve the company profitability and financial ratios. The expected increase in profits in the long run, would enhance the expected returns to the valued members and can then be available for, inter alia, distribution to the members by way of dividend end and or to meet any future capital expenditures.
