17 October 2024 01:26 am Views - 148
Hela Apparel Holdings PLC has confirmed the successful completion of its rights issue, raising Rs.1,596,826,135 through the issue of shares.
This achievement reflects the strong support of the company’s shareholders and will contribute to the strengthening of the Hela group’s balance sheet for future growth.
The rights issue offered a total of 319,365,227 ordinary voting shares to the existing shareholders on a proportional basis. As a result of the subscriptions received from the shareholders, including from the company’s top three shareholders and applications for additional shares, the issue was successfully oversubscribed on the closing date.
The funds raised are intended to be used to settle a portion of the group’s existing bank borrowings as disclosed to the Colombo Stock Exchange, via a shareholder circular dated August 8, 2024.
CT CLSA Capital (Pvt.) Ltd acted as the manger to the issue, while FJ&G de Saram supported the process as the legal advisor and SSP Corporate Services (Pvt.) Limited provided the registrar services.
The rights issue is considered by the company’s Board of Directors to be the first phase of the company’s capital augmentation strategy to strengthen its balance sheet and position the Hela group for profitable growth. The structure and details of the subsequent capital raises are to be determined and announced by the Board of Directors.
Hela Apparel Holdings PLC provides sustainability-focused apparel supply chain and brand management solutions encompassing design, sourcing, marketing and distribution through its global footprint, which includes a brand licensing division based in the UK. The company works closely with global brands in the intimate, active and kids wear product categories.
With 10 manufacturing facilities across multiple destinations, four design centers and six product showrooms in key markets, the Hela group’s multifaceted workforce tops 14,000 globally and leads the industry in providing ethical and sustainable apparel solutions.