Sampath Bank finds buyers to allot unsubscribed rights

Sampath Bank PLC last Friday said it found buyers for the unsubscribed rights.

“We wish to inform you that the board of directors was successful in allotting all of the shares that remained unsubscribed at the close of the rights issue of the company.
“The allotments amounting to 25, 468, 640 shares were made to investors sourced by the board and by the fulfillment of all the pending allocations to the shareholder to whom it had previously not been able to allot their full entitlement of rights as a result of the under subscription that remained at the close of the rights issue,” the bank said in a stock market filing.
According to market sources, the majority of the unsubscribed rights were allotted to local high net worth individuals. 

Sampath Bank offered 89 million shares at Rs.136 each in the proportion of seven new voting shares for every 23 held to raise Rs.12.1 billion. Sampath Bank share on Friday closed at Rs.139.20, up 90 cents or 0.65 percent.

At the time the rights issue was announced on March 1, Sampath share was trading at Rs.230.90.

The rights issue was called by the bank to bolster its core capital, barely a year after it raised a similar amount in another rights issue.

Also, the call for fresh cash came roughly after two weeks it raised Rs.7 billion via a subordinated debenture issue.