Sri Lanka’s Commercial Bank is set to raise Rs. 22.5 billion through a Rights Issue, aiming to strengthen its Tier I capital and support future business expansion.
This plan involves issuing new shares:
- 252.08 million voting shares offered at Rs. 85 each on a 1-for-5 basis, raising Rs. 21.42 billion.
- 15.847 million non-voting shares offered at Rs. 69 each, raising Rs. 1.09 billion.
The voting share price closed at Rs. 112.75 yesterday, down 75 cents, while the non-voting share price fell 30 cents to Rs. 89.80.
Approval Process and Shareholder Vote
The Rights Issue requires approval in principle from the Colombo Stock Exchange (CSE) for listing the new shares. Additionally, shareholder approval will be sought at an Extraordinary General Meeting (EGM) to be scheduled soon.
Existing Shareholding Structure
Major shareholders of Commercial Bank include:
- DFCC Bank (125% voting stake)
- Indra Silva (9.89% voting)
- EPF (8.61% voting)
- D.P. Pieris (7.7% voting)
- IFC (7.1% voting)
- SLIC Life Fund (5% voting)
For non-voting shares, key stakeholders include:
- ETF (7.78%)
- Akbar Brothers (4.85%)
- GF Capital Global (2.3%)
Looking Ahead
This Rights Issue signifies Commercial Bank’s commitment to long-term growth and positions them to capitalize on future opportunities.