Lankem Ceylon to tap shareholders to raise Rs.677mn for working capital

Lankem Ceylon PLC yesterday revealed plans to raise Rs.677 million from the shareholders, to support its working capital requirements.

Accordingly, the company plans to issue 33.8 million new shares, by way of a rights issue, at a price of Rs.20 each, in the proportion of one new share for every existing issued ordinary share, subject to shareholder approval.

Lankem Ceylon share closed at Rs.31.30 yesterday, down Rs.2.60 or 7.67 percent .

As at September 30, 2020, Lankem Ceylon’s net asset value per share was Rs.37.46, down from Rs. 40.27 six months ago.

During the six months ended September 30, 2020, Lankem Ceylon narrowed its net loss to Rs.416.8 million, from Rs.530.7 million a year ago.

As at same date, the company had over Rs.10 billion listed under its current liabilities.

The stated capital of the company is Rs.930.3 million, represented by 33.8 million shares. 

Colombo Fort Land & Building PLC owns 44.31 percent of Lankem Ceylon, followed by 32.41 percent owned by EB Creasy & Company PLC.