ComBank goes for Rs 9.7 b rights issue

Commercial Bank will go for a Rights Issue followed by a Sub Division of Shares, a CSE filing said yesterday.

The Bank expects to raise Rs 9.2 billion through the Rights Issue of Ordinary Voting shares and Rs 454 million through the non voting shares. Under the Rights Issue 50,948,400, Ordinary Voting shares in the ratio of one new Ordinary Voting Shares each for every seven shares will held at an issue price of Rs 181.65 per share.

Over three million Ordinary Non Voting Shares in the ratio of one new Ordinary Non Voting share each for every seven shares will held at an issue price of Rs 130.13.

The objective of the Rights Issue are to increase the Tier 1 Capital of the bank in order to accommodate and facilitate the future business growth.

The proposed sub division of both ordinary voting and non voting shares will be effective after this proposed Rights Issue.