TOL Gases rights issue oversubscribed by 129pc
DAR ES SALAAM: TOL Gases Plc has raised more than its targeted amount in a rights issue, attracting subscriptions worth 0.57bn/- against the planned 8.17bn/-, as shareholders demonstrated strong confidence in the company’s growth and expansion plans.
The industrial and medical gases producer received applications for 14.88 million shares, exceeding the 11.50 million shares offered under the capital-raising exercise, representing a subscription rate of more than 129 per cent.
The company said in a public notice that “The rights issue, which was conducted between September 17 and October 8 this year, recorded a subscription rate of more than one h129 per cent,” The gas company issued the initiative to expand its carbon dioxide (CO2 ) production capacity, marking the next phase in the growth and transformation of one of country’s longest-established industrial and medical gases companies.
The firm’s Chairperson Mr Leonard Kitoka, said during the announcement event that the Rights Issue represents an important transition for the company from business recovery to its next phase of investment and growth.
“Over the past five years, we have rebuilt a stronger and more resilient firm. The opportunity before us is to translate the progress into additional capacity. This initiative gives is the means to address a persistent supply gap, strengthen reliability and position the firm to serve growing demand in the country,” he said.
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The successful rights issue marks a strong response from existing shareholders, whose participation enabled the company to attract subscriptions above its intended fundraising target.
Under the offer, existing shareholders were invited to purchase one new share for every five shares held at 710/- per share.
Following the oversubscription, TOL Gases said it had obtained approval from the Capital Markets and Securities Authority (CMSA) to accept applications amounting to 8.17bn/-, equivalent to the approved offer size.
In addition, the company will refund 2.40bn/- representing applications that exceeded the approved amount. The refunds are scheduled for November 13 this year.
