Cairo – Mubasher: The board of directors of the Egyptian for Developing Building Materials (Lift Slab) recommended an increase in the company’s issued capital to EGP 140.3 million from EGP 56.125 million.
The capital is proposed to be increased by 150% or EGP 84.188 million to be financed by a rights issue through the issuance of 64.89 million shares at a nominal value of EGP 1.24 apiece, in addition to issuance expenses of EGP 0.03 per share, the company said in a statement to the Egyptian Exchange (EGX) on Thursday.
The board decided to appoint an independent financial adviser to conduct a fair value (FV) study of the company’s shares.
The proposed increase, pending shareholder approval, comes five months after the company raised its capital by EGP 22.05 million to EGP 56.12 million from EGP 34.07 million through the issuance of 3.55 million shares at a nominal value of EGP 6.20 per share.
Planned investments
The capital increase will be used in providing the required operating capital for investing in the real estate development sector with a value of EGP 51.132 million to finance the construction of a mixed-use building in Damietta.
The project, spanning over 1,065 square metres, will be established in partnership with MOT Investment & Projects with investments of EGP 100 million and expected sales of more than EGP 160 million.
In addition, the company aims to invest in two land plots spread over 3,555 sqm with investments of EGP 300 million in partnership with MOT.
Moreover, the company also plans to use the capital increase to resume the renovation and replacement of equipment, purchase lands for a warehouse and a workshop, and resume the development of a tunnel along Cairo-Assuit western desert road.
It is worth mentioning that for the full-year 2019, Lift Slab reported net profits of EGP 3.618 million, compared to around EGP 383,500 in the prior year.
