According to Engineering News, shareholders of JSE-listed PPC subscribed for 920-million rights offer shares of its R4-billion rights offer. In August, the company reported it would price its rights offer at a 55.5% discount as it fought for survival in the face of depressed domestic growth.
PPC aimed to sell one-billion shares at R 4 each to its shareholders, well below the stock’s closing price of R 8.99 at the time. The cement maker further reported that it received applications for 5.09-billion rights offer shares, equivalent to 509% of the total rights offer shares available for subscription, from holders of rights wishing to acquire rights offer shares in addition to their rights entitlements. PPC CEO Darryll Castle said the success of the rights offer enabled the company to settle a large portion of its existing debt, placing it in a much stronger financial position.
“With liquidity concerns dealt with, we can focus all our efforts on the delivery of our expansion projects and business plans. This is to counter the impact of a continued low-growth environment locally and grow into a more robust, diversified business able to drive sustainable returns for shareholders,” he noted.
