Investment banking house Barita Investments is set to issue 160 million shares to the public in its fourth capital raising foray since Cornerstone United Holdings acquired majority shares in the company. The issue may be upsized and, if so, could raise as much as $19 billion in fresh capital, ICInsider.com estimates.
Barita head quarters
Shareholders of Barita Investments recently approved a resolution at an Extraordinary General Meeting to issue up to 160 million ordinary shares or such greater amount as the Directors in their absolute discretion may approve as part of the unissued authorised capital of the company to raise additional capital for the Company.
The general public will be invited to subscribe for New Ordinary Shares on such terms and conditions as the Directors may consider expedient in their absolute discretion. The shares to be issued may be upsized to a maximum of 80 million additional shares in the event that the invitation is oversubscribed.
The price band date of the issue is to be determined by the directors. The last APO that done in August of 2020, with the offer document, dated July 30, at which time the JSE closing price was $57.93, but the last traded price was $54, the offer was set at $52 for the general public and existing shareholders. With the stock trading around $84 currently, the price for the new APO could be around $80.
Barita Investments is listed on the Jamaica Stock Exchange and has total assets of $79 billion, up from $49 billion at the end of the year ago period, with Shareholders’ equity of $28.7 billion in March 2021. When Cornerstone acquired the majority shares, total assets were just $17 billion and a mere $3 billion shareholders’ equity.
